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Dog Dandy distributes a dog collar made of wooden beads that sells for $40 per unit. Variable expenses are $20 per unit, and fixed expenses total $134,400 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Operating income 5448,000 224,000 224,000 134,400 $ 89,600 Required: Answer each of the following independent questions based on the original data, 4. What is the degree of operating leverage based on last year's sales? (Round your answer to 1 decimal place.) Degree of operating leverage 41 5. Assume the this year's unit sales will decrease by 20% next year. Using the degree of operating leverage from last year what percentage decrease in operating income will the company incur this year? Decree noptiere 6. The sales manager is convinced that a to% reduction in the selling price, combined with a $21.200 increase in advertising, would increase this year's unit sales by 40% if the sales manager is right, what would be this year's operating income this ideals are implemented? Opening in 6-b. Do you recommend implementing the sales manager's suggestions? Yes No