Question: Compute and use operating leverage factor (Learning Objective 5) Suppose Kay sells 800 posters. Use the original data ( ($ 35) sales price, ($ 21)

Compute and use operating leverage factor (Learning Objective 5)

Suppose Kay sells 800 posters. Use the original data ( $\$ 35$ sales price, $\$ 21$ variable cost, $\$ 7,000$ fixed expenses) to compute her operating leverage factor. If sales volume increases $10 \%$, by what percentage will her operating income change? Prove your answer.

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