a. If you know that 100% of costs were variable, how much of the sales increase is due to price and how much is due to volume? Explain. ANSWER THE FOLLOWING QUESTIONS BASED ON EXHIBIT 4 b. What would operating margin be in 2015 if sales went up 4%, all attributable to volume growth? Show work. Assume operating expenses are fixed. c. What would operating margin be in 2015 if sales went up 4%, all attributable to price increases? Show work. d. On what section of the Cash Flow statement would the following items appear? Deprecation Increase in inventory Capital Expenditures Issuance of Debt EXHIBIT 2 2014 2015 Revenues 19,500 20,475 COGS 10,500 11,000 Gross Profit 9,000 9,475 Operating Exenses Operating Income Interest Expense 4,227 4,624 4,851 1,760 4,773 1,840 Income Before Taxes 2,933 3,091 Income Tax 733 773 Net Income 2,200 2,318 EXHIBIT 4 compatiy 2014 REVENUES 5,000 VARIABLE COGS 3,500 FIXED COGS 500 OPERATING EXPENSES 400