Cullumbers Pantry is a chain of arts and crafts stores. Results for the most recent year are as follows:

Sales revenue				$15,480,000
Variable expenses		$4,816,000
Fixed expenses		7,224,000
Total expenses				12,040,000
Operating income				$3,440,000

(a)

What is Cullumbers Pantrys degree of operating leverage?

Degree of operating leverage

enter the degree of operating leverage amount in dollars

(b)

If sales increase by 5%, what will the new operating income be?

New operating income

$enter the new operating income amount in dollars