After spilling his plate of spagheti all over his friend's apartmentfbor , David rented a carpetcleaner to clean itup In doing so, he realized just how easy it is to clean car pets ! He started his own business, diving in head-first by purchasing a carpet cleaner, to make a little money. His friends are keen to use his services to clean their rented apartments before handing back keys to the landlords. David charges $40 to clean the main areas of an apartment In addition to his equipmentcosts, he uses a cleaning solution on the car pet which costs about $10 per unit cleaned Because of his class load, David currently cleans just 4 apartments per month, buthe is thinking aboutas king his roommate to join himso that he can increase the volume of sales. (a) Your answer is correct At his current level of activity, David's degree of operating leverage (DOL] is 15. How much are his monthly fixed costs? Fixed ood to $ 40 per month eTextbook and Media Assist a nice Used Attempts: 1 of 2 bed (b) Your answer is correct If David's roommate helps in this business, how much more income can the business make if sales volume increases by 50%? (David would share his season tickets to the local NHL team with his roommate in exchange for his time] Increase in income $ 60(C) Your answer is partially correct Let's ass ume, instead, that the roommate thing doesn't work out David now wants to consider other ways to increase his profitin this business. [ed) If he increases his selling price by 20%% and maintains the same volume offour units per month, does itaffecthis DOL? (Round answerto 2 decimal places, e.g. 1525) Effect on DOL 25% Decrease V [c2) If so, what does this changed DOL mean for David? Operating income will be affected less V by a change in sales. e Textbook and Media Assist a nice Used Save for Later Attempts : 1 of 2 used Submilt & ns wer