Question: A Corporation has provided its contribution format income statement for August Sales $863,300 Variable expenses 424,200 Contribution margin 436,100 Fixed expenses 352,400 net operating income

A Corporation has provided its contribution format income statement for August

Sales $863,300

Variable expenses 424,200

Contribution margin 436,100

Fixed expenses 352,400

net operating income $83,700

a. Compute the degree of operating leverage to two decimal places.

b. Using the degree of operating leverage, estimate the percentage in net operating income that should result from a 14% increase in sales.

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