Computing Operating Leverage

Assume that the company sells each month an average of $12,000$ servings of coffee, $7,500$ servings of tea, and $4,500$ servings of smoothies.

REQUIRED

a$.$ Calculate Coffee Bean's operating leverage ratio

b$.$ If sales increase by $20\%,$ by how much will before$-$tax profit be expected to change?

$

c$.$ If sales decrease by $20\%,$ by how much will before$-$tax profit be expected to change?

$

Note: Use a negative sign with your answer to indicate a decrease in profits.