11:21 PM Thu Feb 4 Documents Practice+Set+1+%28Chapters+1-2%29 2 7) Assume sales decrease by 5% in 2020, how much will the company's net operating income change (use the degree of operating leverage to compute)? (Answer: decrease by 20%) 2. The Starfish restaurant's customer visits and total expenses over the last seven months were: Month Customer Visits March 8,000 April 7,500 May 10,000 June 11,500 July 13,500 August 12,500 September 10,000 Expense $ 12,000 $11,700 $ 13,200 $ 14,100 $ 15,300 $ 14,700 $ 13,200 100% EDIT 1) Assuming customer visit is a measure of overall activity of the restaurant, Use the high-low method to estimate a cost formula for total expenses. 2) Using the cost formula which you derived above, what amount of expenses would you expect to be incurred at an activity level of 11,500 customer visits?