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Modern Artifacts can produce keepsakes that will be sold for $40 each. Nondepreciation fixed costs are $600 per year, and variable costs are $30 per
Modern Artifacts can produce keepsakes that will be sold for $40 each. Nondepreciation fixed costs are $600 per year, and variable costs are $30 per unit. The initial investment of $1,800 will be depreciated straight-line over its useful life of 6 years to a final value of zero, and the discount rate is 8%.
a.What is the degree of operating leverage of Modern Artifacts when sales are $4,000?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
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