Modern Artifacts can produce keepsakes that will be sold for $93 each. Nondepreciation fixed costs are $1,200 per year, and variable costs are $65 per unit. The initial investment of $3,600 will be depreciated straight-line over its useful life of five years to a final value of zero, and the discount rate is 11%. a. What is the degree of operating leverage of Modern Artifacts when sales are $6,975? (Round your answer to 1 decimal place.)

b. What is the degree of operating leverage when sales are $12,555? (Round your answer to 1 decimal place.)