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OceanGate sells external hard drives for $288 each. Its totalfixed costs are $45 million, and its variable costs per unit are$173. The corporate tax rate is 41%. If the economy is strong, thefirm will sell 2 million drives, but if there is a recession, itwill sell only half as many.a. What will be the percentage decline in salesif the economy enters a recession? (Negative value shouldbe indicated by a minus sign. Round your answer to2 decimal places.)b. What will be the percentage decline inprofits if the economy enters a recession? (Negative valueshould be indicated by a minus sign. Round your answer to 2 decimalplaces.)c. Calculate the operating leverage of thisfirm? (Round your answer to 2 decimal places.)
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