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.)

degree of operating leverage___________

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___________