Nole K. Sum of Green Co. has created a new electric car charging station for which there seems to be significant initial demand. He is evaluating two different facilities wherein he can produce his charging stations. Both are of similar size, in equally desirable locations and will require similar start up costs. The only apparent difference is the rental fee structure. Here is some additional information: Expected average selling price of the un $ Expected variable cost (without rent) $ Expected monthly fixed cost (without re $ 1,875.00 per unit 800.00 per unit 490.00 per unit at a sales level of 600 units Nole is uncertain as to the volume of sales because he knows they will be largely dependent on the outcome of the current federal election. His assessment at this point of the probability of certain sales levels are as follows: Further enhanced green focused outcom No change to current status Anti-climate change outcome Probability 45.0% 15.0% 40.0% Units 1,000 700 500 Finally the rental fee structure of the two facilities being considered are as follows (fixed amount plus % of sales revenue) Fixed monthly fee % of sales revenue Facility A Facility B $ $ 145,000 25,000 0% 10% Required: a. What do you suggest Nole use for his expected sales volume for this analysis? b. Calculate the degree of operating leverage for both facility rental options at the expected sales volume levels you calculated in a) above. From a risk perspective which is the more desirable option and why?