Question: 5 . Refer to the original data. During the first year, the store sold only 2 , 5 0 0 pairs of sandals and reported

5. Refer to the original data. During the first year, the store sold only 2,500 pairs of sandals and reported the following operating results:
Sales (2,500 pairs)$ 50,000Variable expenses30,000Contribution margin20,000Fixed expenses16,000Net operating income$ 4,000
What is the stores degree of operating leverage?
Angie is confident a more intense sales effort and a more creative advertising program will increase unit sales by 50% next year. Using the degree of operating leverage, what would be the expected percentage increase in net operating income if Angie is able to increase unit sales by 50%?

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