20. Timekeepers, Inc. makes quality grandfather clocks. Each clock is sold for Fixed costs incurred each year for factory upkeep and administratives expenses are $200,000. The production equipment costs $1 million and is depreciated straight-line over 10 years to a salvage value of zero b. Year 1 Timekeepers sold 250 clocks and in Year 2 it sold 300 clocks, What was its percentage increase in pretax profits in Year 2 vs. Year 1? C. What is the company's Degree of Operating Leverage