Last Chance Gaming manufactures slot machines that are sold to individuals for $710 each. Fixed operating costs are $653,200, and each machine's variable

cost is 60 percent of its selling price.

a. What is the firm's operating breakeven point? Round your answer to the nearest dollar.

$

b. What is the firm's degree of operating leverage at sales equal to (i) 4,000 machines and (ii) 7,000 machines? Do not round intermediate calculations. Round

your answers to two decimal places.

DOL at sales equal to 4,000 machines:

DOL at sales equal to 7,000 machines: