Assume that the operating resluts for last year were sales

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Assume that the operating resluts for last year were: Sales $400K, Variable Exp. 160K, CM 240K, FE 180K, Net operating income $60K.
Compute the degree of operating leverage at the current level of sales.
The president expects sales to increase by 20% next year. By what percentage should net operating income increase?

Reference no: EM13602621

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