Mr. Pickerupper wants to open a new vacuum store called the Pick-up in a nearby plaza. Mr. Pickerupper will be selling vacuums for $160 each. Variable costs (not including the leasing costs below) are $62 for every vacuum. There are no fixed costs, other than the leasing costs below.

In terms of lease payments, the plaza has provided him three options: i. Pay $22 per vacuum sold ii. $19,000 per month iii. $12,000 per month and $15 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 210 units are sold and if 620 units are sold.

Lease Option	Operating Income Based on the Number of Vacuums Sold
	210 units	620 units
i. Pay $22 per vacuum sold	$Answer	$Answer
ii. $19,000 per month	$Answer	$Answer
iii. $12,000 per month and $15 per vacuum sold	$Answer	$Answer

b) At a production level of 620 units, which option should be recommended? Option: Answeriiiiii c) Calculate the degree of operating leverage for the second lease option if Mr. Pickerupper sells 620 vacuums. Round your answer to 2 decimal places. Degree of Operating Leverage: Answer