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Last year, the company sold 50,000 units and had the bolow sales and cost figures. Addiling Food - Total sales in the number of units

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Last year, the company sold 50,000 units and had the bolow sales and cost figures. Addiling Food - Total sales in the number of units would increase 25% (if added) - The average sales price per unit would increase from the current $5.00 to $5.00 (if added) - The variable cost per unit would increase to $2.50 per unit to account for the added cost (if added) - There would be an increase in fixed costs of $25,000 for advertising (if added) Adding Drive Up Window - This alternative is exclusive of Adding Food Option - Total sales in the number of units would 80 up 13056 from last year. - The construction of the drive op window would incresse fixed costs by s130,000- which represents 1 construction 8 installation costs. - Drive Up Window would allow an increase in average sales to $3,20 a cup of coffee and variable cost per unit would remain the same at so.90 per unit. 1.) Compute the Degree of Operating teverage for Option 1: Adding Food and and Option 2: Drive up Window

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