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

	Before Automation			After Automation
Sales revenue	$	204,000		$	204,000
Less: Variable cost		92,000			38,000
Contribution margin	$	112,000		$	166,000
Less: Fixed cost		13,000			63,000
Net operating income	$	99,000		$	103,000

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.