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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 $130 each. Nondepreciation fixed costs are $2,000 per year, and variable costs are $80 per unit. The initial investment of $6,000 will be depreciated straight-line over its useful life of 3 years to a final value of zero, and the discount rate is 14%.
a. What is the degree of operating leverage of Modern Artifacts when sales are $11,050?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. What is the degree of operating leverage when sales are $17,810?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. Why is operating leverage different at these two levels of sales?

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