ces Angle Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store: Sales price per pair of sandals Variable expenses per pair of sandals. Contribution margin per pair of sandals Fixed expenses per year: Building rental Equipment depreciation Selling Administrative Total fixed expenses $ 26 13 $ 13 $ 5,900 5,900 5,900 21,300 $ 39,000 Problem 6-30 (Algo) Part 5 5. Refer to the original data. During the first year, the store sold only 4,000 pairs of sandals and reported the following operating results: Sales (4,000 pairs) Variable expenses Contribution margin Fixed expenses Net operating income $ 104,000 52,000 52,000 39,000 $13,000 a. What is the store's degree of operating leverage? b. Angie is confident that with a more intense sales effort and with a more creative advertising program she can increase unit sales by 50% next year. Using the degree of operating leverage, what would be the expected percentage increase in net operating income if Angle is able to increase unit sales by 50% ? a. Degree of operating leverage b. Expected percentage increase in net operating income %