Ramada Company produces one golf cart model. A partially complete table of company costs follows:

Number of golf carts produced and sold		1,500		2,000		2,500
Total costs
Variable costs	$	?	$	840,000	$	?
Fixed costs per year		?		600,000		?
Total costs		?		1,440,000		?
Cost per unit
Variable cost per unit		?		?		?
Fixed cost per unit		?		?		?
Total cost per unit		?		?		?

Required: 7. Calculate Ramadas degree of operating leverage if it sells 2,050 carts.

8. Using the degree of operating leverage, calculate the change in Ramadas profit if sales are 10 percent less than expected.