3. Steve's baked goods makes and sells cookies. At a production and sales level of 5,000 cookies, Steve has the following costs per cookie:

DM $.20 DL $.40 Var MOH $.50 Fix MOH $1

Steve has no variable selling and the only other costs are fixed at $5,000 per month. Steve sells cookies for $4 each. What is Steve's Operating Leverage (round to the nearest .01?

4. Stephanie's paints sells primer and finish paints in the ratio of 2 gallon: 3 gallons (2 primer: 3 finish). Primer has a CM of $10 per gallon and finish has a CM of $15 per gallon. Stephanie also has fixed costs in the amount of $12,000. If Stephanie wants to make $14,000, how much Finish will she sell (she will also be selling Primer, but I just want the # gallons of Finish)? (round to nearest gallon)