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S You A project has fixed costs of $400 per year, depreciatictwo-thirds of revenues. n charges of $400 a year, annual revenue of $3,600,

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S You A project has fixed costs of $400 per year, depreciatictwo-thirds of revenues. n charges of $400 a year, annual revenue of $3,600, and variable costs equal to a. If sales increase by 17%, what will be the percentaganswer as a percent rounded to 2 decimal places.) increase in pretax profits? (Do not round intermediate calculations, Enter your Pretax profit increase 51.00:% b. What is the degree ofoperating leverage of this project? (Do not round intermediate calculations, Round your answer to 2decimal places.)

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