Davison Co$.$ prepared the following contribution format income statement based on a sales volume of $10,000$ units $($the relevant range of production is $5,000$ units to $15,000$ units$)$:SalesVariable expensesContribution marginFixed expensesNet operating income$$$275,000165,000110,00082,50027,500$Required:Using the degree of operating leverage, what is the estimated percent increase in net operating income of a $3\%$ increase in sales? $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$Percent increase in net operating income