8 A project has fixed costs of $1,600 per year, depreciation charges of $500 a year, annual revenue of $9,300, variable costs equal to two-thirds of revenues and the tax rate is 20%. 1.25 a. If sales increase by 10%, what will be the increase in pretax profits? points b. What is the degree of operating leverage of this project? Note: Round your answer to 1 decimal place. Answer is complete but not entirely correct. a. Increase in pretax profits 31% b. Degree of operating leverage 3.1 times Return to question