Ron's Shingle Corporation is considering the purchase of a new automated shingle-cutting machine. The new machine will reduce variable labor costs but will increase depreciation expense. Contribution margin is expected to increase from \(\$ 160,000\) to \(\$ 240,000\). Net income is expected to be the same at \(\$ 40,000\). Compute the degree of operating leverage before and after the purchase of the new equipment. Interpret your results.