aldovar company produces a variety of chemicals. One division makes reagents for laboratories. The divisions projected income statement for the coming year is:

Sales (203,000 units @ $70) $14,210,000

total variable cost 8,120,000

Contribution margin $6,090,000

Total fixed cost 4,495,000

Operating income $1,144,500

Compute the degree of operating leverage based on the orginal income statement. If sales revenue are 8% greater than expected, what is the percentage increase in operating income? (Note: round operating leverage to two decimal places.