OceanGate sells external hard drives for $140 each. Its total fixed costs are $20 million, and its variable costs per unit are $100. The corporate tax rate is 30%. If the economy is strong, the firm will sell 5 million drives, but if there is a recession, it will sell only half as many.

OceanGate sells external hard drives for $140 each. Its total xed costs are $20 million, and its variable costs per unit are $100. The corporate tax rate is 30%. If the economy is strong, the rm will sell 5 million drives, but if there is a recession, it will sell only half as many. a. What is the nns' degree of operating leverage (dened as the ratio of the percent change in EBIT to the percent change in sales)? Degree of operating leverage |:| b. If the economy enters a recession. what will be the rm's aftertax prot? (Enter your answer in millions.) After-tax prot as |:| million