$($c$)$ Saunders Company has recently become aware of the large total discounts on its orders and would like to know the impact on profit. The compary computed its operating profit as follows:

Net sales after discounts

TK$.200,000$

Variable costs

Contrbution margin

Fixed costs

Th$.120,000$

Operating profit

$70,000$

Tk$.50,000$

Required

$(1)$ Suppose Saunders could reduce its sales discounts to produce a $10\%$ increase in net revenues but no changes in variable or fixed costs. By what percent would eperating profits increase? How does this percentage compare to the percentage increase in net sales revenue?

$($ii$)$ Refer to the original information in this problem. Suppose Saunders' salespeople discount sales another $2\%.$ With no change in variable or foed costs. By what percent would operating profits decrease? How does this percentage compare to the percentage increase in sales discounts?

$($ii$)$ Consider the ratio of operating profi to sales. How does this ratio relate to the percentage change in eperating profit, for a given percentage change in the net sales revenue?