Modern Artifacts can produce keepsakes that will be sold for $110 each. Nondepreciation fixed costs are $1,300 per year, and variable costs are $70 per unit. The initial investment of $3,900 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 10%.

A. What is the degree of the operating Modern Artifacts when sales are $6,050?

B. What is ther degree of the operating leverage when sales are $11,000?

C. Why is operating leverage different at these two levels?

degree of operating leverage is ____________ when profits are ___________