Modern Artifacts can produce keepsakes that will be sold for $270 each. Nondepreciation fixed costs are $3,200 per year, and variable costs are $190 per unit. The initial investment of $9,600 will be...

Modern Artifacts can produce keepsakes that will be sold for $270 each. Nondepreciation fixed costs are $3,200 per year, and variable costs are $190 per unit. The initial investment of $9,600 will be depreciated straight-line over its useful life of 8 years to a final value of zero, and the discount rate is 16%.

a. What is the degree of operating leverage of Modern Artifacts when sales are $16,740?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

 b.What is the degree of operating leverage when sales are $28,890?
(Do not round intermediate calculations. Round your answer to 2 decimal places.)

c.Why is operating leverage different at these two levels of sales?