Use the following data to answer Questions 40 and 41. Jayco, Inc., sells 10,000 units at a price of $5 per unit. Joyco's fixed costs are $8,000, interest expense is $2,000, variable costs are $3 per unit, and EBIT is $12,000.
1.Jayco' s degree of operating leverage (DOL) and degree of financial leverage (DFL) are closest to: