A project has fixed costs of $1,600 per year, depreciation charges of $200 a year, annual revenue of $14,400, and variable costs equal to two-thirds of revenues.

a. If sales increase by 13%, what will be the percentage increase in pretax profits? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b. What is the degree of operating leverage of this project? (Do not round intermediate calculations. Round your answer to 2 decimal places.)