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Alfa Company manufactures and sells a single product. The Company's sales (20 UNITS SOLD) and expenses for last month follow: Sales TOTAL 300 180 Less

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Alfa Company manufactures and sells a single product. The Company's sales (20 UNITS SOLD) and expenses for last month follow: Sales TOTAL 300 180 Less variable expenses Contribution margin Less fixed expenses Net profit 120 80 40 Required A) Calculate the degree of operating leverage at the current level of sales B) Next month sales are expected to increase by 25%. By what percentage will net profit increase AND what will the actual net profit be

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