CYD Company is planning the next year of operations and has just compiled the following Contribution Margin Income Statement:

CM Income Statement

Based on the information in Question 6, if the company has a 10% increase in sales, its income before tax will increase by__________

Please answer my two questions above, Thanks!

\begin{tabular}{lrr} & Units Sold & Per Unit \\ \cline { 2 - 3 } Sales & 10,000.00 & $120.00 \\ \cline { 3 - 4 } Variable Costs & 10,000.00 & $300,000.00 \\ Contribution Margin & & $300,000.00 \\ Less Fixed Costs & & $900,000.00 \\ Total Income Before Tax & $800,000.00 \\ \hline 100,000.00 \end{tabular} Based on this information, CYD's leverage factor is