Modern Artifacts can produce keepsakes that will be sold for $60.00 each. Nondepreciation fixed costs...

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Accounting

Modern Artifacts can produce keepsakes that will be sold for $60.00 each. Nondepreciation fixed costs are $600 per year. Variable costs are $40 per unit. The initial investment of $1800 will be depreciated straight line over its useful life of 3 years to a final value of 0, and the discount rate is 12%.

a.What degree of operating leverage of Modern Artifacts when sales are $3720?

b.What is the degree of operating leverage when sales are $7080?

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