Modern Artifacts can produce keepsakes that will be sold for $20 each. Nondepreciation fixed costs are $200 per year, and variable costs are $10 per unit. The initial investment of $600 will be depreciated straight-line over its useful life of 6 years to a final value of zero, and the discount rate is 15%. a. What is the degree of operating leverage of Modern Artifacts when sales are $640? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 16 points Degree of operating leverage eBook References b. What is the degree of operating leverage when sales are $1,620? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Degree of operating leverage c. Why is operating leverage different at these two levels of sales? Degree of operating leverage is when profits are An auto plant that costs $100 million to build can produce a line of flexfuel cars that will produce cash flows with a present value of $140 millon if the line is successful but only $50 million If it is unsuccessful. You believe that the probability of success is only about a-1. Calculate the expected NPV. (Do not round intermediate calculations. A negatlve amount should be Indicated by a minus sign. Enter your answer in millions.) 16 points Expected NPy million eBook a-2. Would you build the plant? References Yes O No Suppose that the plant can be sold for $95 million to another automaker If the auto line is not successful. b-1. Calculate Enter your answer in millions rounded to 1 decimal place.) Expected NPV million b-2. Would you build the plant? Yes O No