A project has fixed costs of $$2,100$ per year, depreciation charges of $$500$ a year, annual revenue of $$10,800,$ variable costs equal to

two$-$thirds of revenues and the tax rate is $20\%.$

a$.$ If sales increase by $10\%,$ what will be the increase in pretax profits?

b$.$ What is the degree of operating leverage of this project?

Note: Round your answer to $1$ decimal place.

a$.$ Increase in pretax profits

b$.$ Degree of operating leverage

$\%$

times