Eickhoff Corporation's contribution format income statement for the most recent month follows:

Sales	$234,000
Variable Expenses	93,000
Contribution Margin	141,000
Fixed Expenses	109,200
Net Operating Income	$31,800

a. Compute the degree of operating leverage to two decimal places.

b. Using the degree of operating leverage, estimate the percentage change in the net operating income that should result from a 1% increase in sales.