The most recent month's contribution format income statement of Eickhoff Corporation is as follows:

Sales	234,000 $
variable expenses	93,000
Contribution margin	141,000
Fixed costs	109,200
Net operating income	31,800 dollars

A. Calculate the degree of operating leverage to two decimal places.

B. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from the 1% increase in sales.

Answer rating: 100% (QA)

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