Question: Please help! I'm not sure how to do the second question. ABCCompany sells pillows for $90 per unit. The variable expenses are $63 per pillow

Please help! I'm not sure how to do the second question.

ABCCompany sells pillows for $90 per unit. The variable expenses are $63 per pillow and the fixed costs are $135,000 per month. The company sells 8,000 pillows per month. The current degree of operating leverage is: (enter your response rounded to two decimals) Management expected sales to increase 10% if variable costs decreased $10 per unit and increasing fixed costs by $109,600. Calculate the new degree of operating leverage. (enter your response rounded to two decimals) Which produces a better degree of operating leverage

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