Akita Company manufactures dog kennels. Following is a summary of its two kennel

products:

Large K Small K

Sales $ $580$ $ $320$

Variable costs $340160$

Fixed costs $10080$

Operating income $ $140$ $ $80$

a$.$ Calculate the Degree of Operating Leverage $($DOL$)$ for Large K and Small K$.$

b$.$ Which Division has the higher risk of loss?