Farhan Company has the following information in relation to its Product A for January 2022:

Sales: $2,000,000;

Variable costs: $750,000

Fixed costs: $ 550,000

The company expects that its sales in February could be increased by 20%. Required: You must show calculations in the textbox below. 1. Compute the Degree of Operating Leverage for January. [1.5 marks] 2. Compute the Degree of Operating Leverage for February. [1.5 marks]