Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows:

	Before Automation			After Automation
Sales revenue	$	195,000		$	195,000
Less: Variable cost		104,000			56,000
Contribution margin	$	91,000		$	139,000
Less: Fixed cost		14,000			56,000
Net operating income	$	77,000		$	83,000

Required:

1. Calculate Lobster Traps break-even sales dollars before and after automation.

2. Compute Lobster Traps degree of operating leverage before and after automation.