Learning Objective 5 E21-39 Computing degree of operating leverage Following is the income statement for Marsden Mufflers for the month of June 2016: 2. 40.2750% MARSDEN MUFFLERS Contribution Margin Income Statement Month Ended June 30, 2016 Sales Revenue (280 units X $325) $91,000 Variable Costs (280 units x $150) 42,000 Contribution Margin Fixed Costs 49,000 12,500 Operating Income $ 36,500 Requirements 1. Calculate the degree of operating leverage. (Round to four decimal places.) 2. Use the degree of operating leverage calculated in Requirement 1 to estimate the change in operating income if total sales increase by 30% (assuming no change in sales price per unit). (Round interim calculations to four decimal places and final answer to the nearest dollar.) 3. Verify your answer in Requirement 2 by preparing a contribution margin income statement with the total sales increase of 30%.