Current Attempt in Progress

Carla Vista's Shingle Corporation is considering the purchase of a new automated shingle$-$cutting machine. The new machine will

reduce variable labor costs but will increase depreciation expense. Contribution margin is expected to increase from $$249,400$ to

$$274,340.$ Net income is expected to be the same at $$43,000.$

Compute the degree of operating leverage before and after the purchase of the new equipment. $($Round answers to $2$ decimal places,

e$.$g$.1\mathrm{.}52.)$

Degree of operating leverage $($old$)$

Degree of operating leverage $($new$)$

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