$\backslash$table$[[$Q$4),\backslash$table$[[$Hugg$-$a$-$Bugg Soft Toys manufactures teddy bears. The annual sales are $350,000$ teddy$],[$bears at $$26$ per teddy bear. Fixed operating costs are $$28,000$ while variable operating$],[$costs are $$16$ per teddy bear. The manufacturer pays annually $$4,500$ of interest on long$-],[$term debt and $$3,000$ of preferred dividends. A tax rate of $40\%$ applies.$],[$a$.$ Calculate the degree of operating leverage $($DOL$)$ at base sales levels.$],[$b$.$ Calculate the degree of financial leverage $($DFL$).],[$of total leverage $($DTL$).],[(20$ Marks$)]]]]$