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Modern Artifacts can produce keepsakes that will be sold for $ 9 6 each. Nondepreciation fixed costs are $ 1 , 2 0 0 per

Modern Artifacts can produce keepsakes that will be sold for $96 each. Nondepreciation fixed costs are $1,200 per year, and variable costs are $70 per unit. The initial investment of $4,100 will be depreciated straight-line over its useful life of five years to a final value of zero, and the discount rate is 10%.
a. What is the degree of operating leverage of Modern Artifacts when sales are $8,160?(Round your answer to 1 decimal place.)
b. What is the degree of operating leverage when sales are $13,920?(Round your answer to 1 decimal place.)Modern Artifacts can produce keepsakes that will be sold for $96 each. Nondepreciation fixed costs are $1,200 per year, and variable
costs are $70 per unit. The initial investment of $4,100 will be depreciated straight-line over its useful life of five years to a final value of
zero, and the discount rate is 10%.
a. What is the degree of operating leverage of Modern Artifacts when sales are $8,160?(Round your answer to 1 decimal place.)
Degree of operating leverage
b. What is the degree of operating leverage when sales are $13,920?(Round your answer to 1 decimal place.)
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