A manufacturing company has the following financial information (in millions of $): $ 823 Sales Cost of goods sold Direct labor Purchased materials Overhead All other costs Pretax earnings 85 310 94 250 84 a. What is the profit leverage effect of purchasing in this company? (Round answer to 1 decimal place.) Profit leverage 9.8 b. What is the increase in earnings from an 8 percent savings in purchasing? (Round answers to 1 decimal place.) Pretax earnings goes from $84 million to Increase ratio million %