E20-35 (similar to) A Question Help Following is the income statement for Mueller Mufflers for the month of June 2018: (Click the icon to view the contribution margin income statement.) Read the requirements Requirement 1. Calculate the degree of operating leverage. (Round to four decimal places.) Select the labels and enter the amounts to calculate the degree of operating leverage for Mueller Mufflers. Degree of operating leverage - X Data Table Requirements Mueller Mufflers Contribution Margin Income Statement Month Ended June 30, 2018 Net Sales Revenue (260 units x $150) $ 39,000 Variable Costs (260 units x $75) 19,500 Contribution Margin 19,500 Fixed Costs 9,500 $ Operating Income 10,000 1. Calculate the degree of operating leverage. (Round to four decimal places.) 2. Use the degree of operating leverage calculated in Requirement 1 to estimate the change in operating income if total sales increase by 30% (assuming no change in sales price per unit). (Round interim calculations to four decimal places and final answer to the nearest dollar.) 3. Verify your answer in Requirement 2 by preparing a contribution margin income statement with the total sales increase of 30%. Print Done Print Done