Question: Need help with a and b please! Modern Artifacts can produce keepsakes that will be sold for $90 each. Nondepreciation fixed costs are $1,100 per
Need help with a and b please!
Modern Artifacts can produce keepsakes that will be sold for $90 each. Nondepreciation fixed costs are $1,100 per year, and variable costs are $65 per unit. The initial investment of $4,300 will be depreciated straight-line over its useful life of five years to a final value of zero, and the discount rate is 10%. a. What is the degree of operating leverage of Modern Artifacts when sales are $7,740 ? Note: Round your answer to 1 decimal place. b. What is the degree of operating leverage when sales are $13,500 ? Note: Round your answer to 1 decimal place
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