At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

10. What would be the increase in Net Income from a 20% increase in Sales? To be marked correct, please give the % increase rather than $ amount, round answer to 2 places and state in decimal form i.e. 75% becomes 0.75.

11.

At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

If the company eliminates sales comissions of $100 per unit by changing to a flat salary increase of $400,000 for its sales managers, by what dollar amount would net income change? Note increases as a positive number, decreases as a negative number.

12.

At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

If instead of changing the sales commissions (treat independently from #11), the company reduces its selling price by $100 per unit, resulting in an increase in sales of 900 units, what is the impact to net income in dollars? Note increases with a positive number, decreases with a negative number.

9.

At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

Compute the operating leverage for Rudy Inc. Round to 2 decimal places.