Question: 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

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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