OceanGate sells external hard drives for $300 each. Its total fixed costs are $60 million, and its variable costs per unit are $240. The corporate tax rate is 30%. If the economy is strong, the firm will sell 2 million drives, but if there is a recession, it will sell only half as many. a. What will be the percentage decline in sales if the economy enters a recession? Percentage decline in sales % b. What will be the percentage decline in profits if the economy enters a recession? Percentage decline in profit % c. Comparing your answers to (a) and (b), how would you measure the operating leverage of this firm? Operating leverage OceanGate sells external hard drives for $300 each. Its total fixed costs are $60 million, and its variable costs per unit are $240. The corporate tax rate is 30%. If the economy is strong, the firm will sell 2 million drives, but if there is a recession, it will sell only half as many. a. What will be the percentage decline in sales if the economy enters a recession? Percentage decline in sales % b. What will be the percentage decline in profits if the economy enters a recession? Percentage decline in profit % c. Comparing your answers to (a) and (b), how would you measure the operating leverage of this firm? Operating leverage