DI variable expenses equal contribution margin 8) Irsales volume increases and all other factors remain constant, then the (A) contribution margin ratio will increase B) break-even point will decrease C) margin of safety will increase relevant equation used in Ch. Cost Volum Relationships D) net operating income will decrease 9) If the degree of operating leverage is 4, then a one percent change in quantity sold should result in a four percent change in: A) unit contribution margin B) revenue. C) variable expense. D) net operating income. Delta Systems uses the following data in its Cost-Volume-Profit analyses Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $320,000 144.000 176,000 104,000 $72,000 What is total contribution margin if sales volume increases by 20% ? A) $176,000 (B) $86,400 C) $211,200 D) $57,600 www blocxa 8 CASIO atu