Question: 4. Perform a what if analysis to see how operating results will change if sales increase by 12% during the second year of operations. What

4. Perform a "what if" analysis to see how operating results will change if sales increase by 12% during the second year of operations.

What is the new net operating income?

What is the new degree of operating leverage?

If sales increased by 10% in the third year, what percentage growth in profit can the company expect?

What is the predicted operating profit in year 3?

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