Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Before Automation After Automation Sales revenue $ 203,000 $ 203,000 Less: Variable cost 89,000 48,000 Contribution margin $ 114,000 $ 155,000 Less: Fixed cost 10,000 57,000 Net operating income $ 104,000 $ 98,000 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.

Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Required: 1. Calculate Lobster Trap's break-even sales dollars before and after automation. 2. Compute Lobster Trap's degree of operating leverage before and after automation. Complete this question by entering your answers in the tabs below. Calculate Lobster Trap's break-even sales dollars before and after automation. (Round your contribution margin ratio to 4 decimal places and final answers to 2 decimal places.) Complete this question by entering your answers in the tabs below