for part 4b answer as amount value not %

Klein Company distributes a high-quality bird feeder that sells for $50 per unit. Variable costs are $20 per unit, and fixed costs total $480,000 annually. 4. Assume that the operating results for last year were as follows: $1,000,000 424,000 Sales Variable expenses Contribution margin Fixed expenses Operating income 576,000 480,000 $ 96,000 a. Compute the degree of operating leverage at the current level of sales. Degree of operating leverage b. The president expects sales to increase by 14% next year. By how much should operating income increase? Operating income increases by 6. Refer to the original data. Assume again that the company sold 22,500 units last year. The president feels that it would be unwise to change the selling price. Instead, he wants to increase the sales commission by $2 per unit. He thinks that this move, combined with some increase in advertising, would increase annual unit sales by 50%. By how much could advertising be increased with profits remaining unchanged? Do not prepare an income statement; use the incremental analysis approach. The amount by which advertising can be increased is