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Modern Artifacts can produce keepsakes that will be sold for $ 1 3 0 each. Nondepreciation fixed costs are $ 2 , 0 0 0
Modern Artifacts can produce keepsakes that will be sold for $ each. Nondepreciation fixed costs are $ per year, and variable costs are $ per unit. The initial investment of $ will be depreciated straightline over its useful life of years to a final value of zero, and the discount rate is
a What is the degree of operating leverage of Modern Artifacts when sales are $Do not round intermediate calculations. Round your answer to decimal places.
b What is the degree of operating leverage when sales are $Do not round intermediate calculations. Round your answer to decimal places.
c Why is operating leverage different at these two levels of sales?
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