Sales Variable expenses Contrnbution margin Fixed expenses Operating income 5,000 10,000 4,000 Required A. Calculate the operating leverage ratio. B. If sales increase by 20%, what will be the percentage change in income? C. If sales increase by $15,000, how much will income increase? Machine hours and electricity costs for Wells Industries for 2011 were as follows: Machine Hours Electricit Costs Month Januar Februar March April May June July August 2,000 2,320 1,520 2,480 3,040 2,640 3,280 2,800 1,600 2,960 3,760 3,360 $ 9,200 10,500 6,750 11,500 14,125 11,000 12,375 11,375 7,750 13,000 15,500 13,875 September October November December Required: A. Using the high-low method, develop an estimate of variable electricity costs per machine hour B. Using the high-low method, develop an estimate of fixed electricity costs per month C. Using the high-low method, develop a cost function for monthly electricity costs D. Estimate electricity costs for a month in which 3,000 machine hours are worked. Regoesi 3) Quillin Company had the following budgeted information for October 1. 2. October 1 cash balance $3,500 E xpected sales 2,500 units at $25 each (half in cash, remainder on credit due in November) Inventory purchases 3,000 units at S14 each (all in cash) Rent $1,450 3. 4