Modern Artifacts can produce keepsakes that will be sold for $20 each. Nondepreciation fixed costs are $200 per year, and variable costs are $30 per unit. The initial investment of $600 will be depreciated straight-line over its useful life of 6 years to a final vlaue of zero, and the discount rate is 15%. a). What is the degree of operating leverage of Modern Artifacts when sales are $640?(Don't round intermediate calculations. Round answer to 2 decimal places) b). What is the degree of operating leverage when sales are $1,620? (Don't round intermediate calculations, round final answer to 2 decimal places)

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.