Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 21% of sales. The income statement for the year ending December 31, 2020, is as follows.

BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2020
Sales				$71,200,000
Cost of goods sold
Variable		$30,616,000
Fixed		8,560,000		39,176,000
Gross margin				$32,024,000
Selling and marketing expenses
Commissions		$14,952,000
Fixed costs		10,660,400		25,612,400
Operating income				$6,411,600

The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 7% and incur additional fixed costs of $9,968,000.

Calculate the degree of operating leverage at sales of $71,200,000 if (1) Bonita Beauty uses sales agents, and (2) Bonita Beauty employs its own sales staff. (Round answers to 2 decimal places, e.g. 1.25.)

				Degree of operating leverage
(1)		Bonita Beauty uses sales agents
(2)		Bonita Beauty employs its own sales staff