Question: 1. Verify the current and projected (with the new technology) breakeven levels of sales reported by Wynona Hill. Calculate the degree of operating leverage

1. Verify the current and projected (with the new technology) breakeven levels

1. Verify the current and projected (with the new technology) breakeven levels of sales reported by Wynona Hill. Calculate the degree of operating leverage (DOL) at the projected annual sales level of 5,000 units, first with the current technology (assuming the firm could, in fact, produce 5,000 units with the existing technology) and then with the proposed new technology. Interpret the calculated DOL figures and explain the significance of the higher DOL at the expected sales level with the proposed new technology.

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