Problem 1021 Operating Leverage (LO4) A project has fixed costs of $2,700 per year, depreclation charges of $900 a year, annual revenue of $28,800, and varlable costs equal to two-thirds of revenues. a. If sales increase by 15%, what will be the percentage increase in pretax profits? Note: Do not round Intermedlate calculations. Enter your answer as a percent rounded to 2 decimal places. b. What is the degree of operating leverage of this project? Note: Do not round Intermedlate calculations. Round your answer to 2 decimal places