Question: Modern Artifacts can produce keepsakes that will be sold for $85 each. Nondepreciation fixed costs are $1,500 per year, and variable costs are $60 per

Modern Artifacts can produce keepsakes that will be sold for $85 each. Nondepreciation fixed costs are $1,500 per year, and variable costs are $60 per unit. The initial investment of $3,000 will be depreciated straight-line over its useful life of five years to a final value of zero, and the discount rate is 12%.

What is the degree of operating leverage of Modern Artifacts when sales are $7,820?

Note: Round your answer to 1 decimal place.

What is the degree of operating leverage when sales are $12,920?

Note: Round your answer to 1 decimal place.

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