1. A new restaurant is ready to open for business. It is estimated that the food cost (variable cost) will be 0.57% of sales, while fixed cost will be $450,000. The first years sales estimates are $1,486,226. Calculate the firms operating breakeven level of sales.

2. A new restaurant is ready to open for business. It is estimated that the food cost (variable cost) will be 40% of sales, while fixed cost will be $436,330. The first years sales estimates are $1,250,000. Calculate the firms degree of operating leverage (DOL).