Apple offers extended service contracts that provide repair coverage for its products. Assume its repair division reports the following annual results.

Sales (60,000,000 units $72 per unit)	$ 4,320,000,000
Variable costs (60,000,000 units $32 per unit)	1,920,000,000
Contribution margin	2,400,000,000
Fixed costs	2,000,000,000
Income	$ 400,000,000

Required: 1. Compute the repair divisions degree of operating leverage. 2. Compute the amount of repair division income if unit sales increase by 8%.

les increase by 8%.