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

Before Automation After Automation

Sales revenue $ $198,000$ $ $198,000$

Less: Variable cost $78,00038,000$

Contribution margin $ $120,000$ $ $160,000$

Less: Fixed cost $15,00058,000$

Net operating income $ $105,000$ $ $102,000$

Required:

Calculate Lobster Trap$$s break$-$even sales dollars before and after automation.

Compute Lobster Trap$$s degree of operating leverage before and after automation.