4. Assume that the operating results for last year were as follows: Sales Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income a. Compute the degree of operating leverage at the current level of sales. (Round your answer to 1 decimal place.) Degree of operating leverage $2,460,000 615,000 1,845,000 922,500 $ 922,500 b. The president expects sales to increase by 60% next year. By how much should net operating income increase? Increase in operating income

4. Assume that the operating results for last year were as follows: a. Compute the degree of operating leverage at the current level of sales. (Round your answer to 1 decimal place.) b. The president expects sales to increase by 60% next year. By how much should net operating income increase