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Modern Artifacts can produce keepsakes that will be sold for $ 2 7 0 each. Nondepreciation fixed costs are $ 3 , 2 0 0

Modern Artifacts can produce keepsakes that will be sold for $270 each. Nondepreciation fixed costs are $3,200 per year, and
variable costs are $190 per unit. The initial investment of $9,600 will be depreciated straight-line over its useful life of 8 years to a final
value of zero, and the discount rate is 16%.
a. What is the degree of operating leverage of Modern Artifacts when sales are $16,740?
Note: 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 $28,890?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Degree of operating leverage
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