D E Operating Leverage 10) Calcluate the degree of Operating Leverage for Companies C, D and E Sales Variable Costs Contribution Margin Fixed Costs Net Income Degree of Operating Leverage 500,000 300,000 200,000 100,000 100.000 300,000 100,000 200.000 150,000 50.000 800,000 400.000 400,000 150,000 250.000 D E 11) Calculate the expected increase in net income based on an expected 15% increase in sales, using the degree of operating leverage from #10 Sales Variable Costs Contribution Margin Fixed Costs Net Income Increase in Net Income (CY - PY/PY Expected Increase based on Operating Leverage 12) Calculate the expected decrease in net income based on an expected 12% decrease in sales, using the degree of operating leverage from #10 D E Sales Variable Costs Contribution Margin Fixed Costs Net Income Increase in Net Income (CY - PY)/PY Expected Increase based on Operating Leverage