Question: 5 . Refer to the original data. During the first year, the store sold only 2 , 5 0 0 pairs of sandals and reported
Refer to the original data. During the first year, the store sold only pairs of sandals and reported the following operating results:
Sales pairs$ Variable expensesContribution marginFixed expensesNet operating income$
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 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
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