3. Angie has decided that she must earn a profit of $22,500 the first year to justify her time and effort. How many pairs of sandals must be sold to attain this target profit? Unit sales to attain target profit pairs 5. Refer to the original data. During the first year, the store sold only 4,000 pairs of sandals and reported the following operating results: Sales (4,000 pairs) Variable expenses Contribution margin Fixed expenses Net operating income $ 120,000 60,000 60,000 45,000 $ 15,000 a. What is the store's degree of operating leverage? b. Angie is confident that with a more intense sales effort and with a more creative advertising program she can increase sales by 50% next year. Using the degree of operating leverage, what would be the expected percentage increase in net operating income if Angie is able to increase sales by 50%? a. Degree of operating leverage b. Expected percentage increase in net operating income