Mr. Duster wants to open a new vacuum store called the Dust-Off in a nearby plaza. Mr. Duster will be selling vacuums for $200 each. Variable costs (not including the leasing costs below) are $52 for every vacuum.

In terms of lease payments, the plaza has provided him three options:

i. Pay $29 per vacuum sold
ii. $25,000 per month
iii. $17,000 per month and $6 per vacuum sold

Do not enter dollar signs or commas in the input boxes.
Use the negative sign for negative values.
Round all answers to the nearest whole number.

a) Calculate the monthly operating income for each of the three options if 370 units are sold and if 700 units are sold.

Lease Option	Operating Income Based on the Number of Vacuums Sold
370 units	700 units
i. Pay $29 per vacuum sold	$Answer	$Answer
ii. $25,000 per month	$Answer	$Answer
iii. $17,000 per month and $6 per vacuum sold	$Answer	$Answer

b) At a production level of 700 units, which option should be recommended?
Option: Answeriiiiii

c) Calculate the degree of operating leverage for the second lease option if Mr. Duster sells 700 vacuums.
Round your answer to 2 decimal places.

Degree of Operating Leverage: Answer