Davis Company has recently become aware of the large total discounts on its orders and would like to know the impact on profit. The company computed its operating profit as follows (Click the icon to view the operating profit.) Read the requirements Operating profit 71,000 By what percent would operating profits increase? How does this percentage compare to the percentage increase in net sales revenue? A 14% increase in net revenues would result in a(n) 42 % increase in operating profit. The percentage increase in operating profits is greater than the percentage increase in net sare revenues. Requirement (b) Refer to the original information in this problem, Suppose Davis' salespeople increase sales discounts to produce a 10% decrease in net revenues, with no change in variable or fixed costs. By what percent would operating profits decrease? How does this percentage compare to the percentage decrease in net sales revenue? Begin by calculating Davis operating profit if its salespeople increase sales discounts to produce a 10% decrease in net revenues, with no change in variable or fixed costs Net sales revenues Variable costs Contribution margin Fixed costs Operating profit