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Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable expenses are $10 per unit, and fixed expenses total $180,000
Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable expenses are $10 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: 4-b. The president expects sales to increase by 16% next year. Using the degree of operating leverage from last year, what percentage increase in operating income will the company realize this year? Calculate the dollar increase in operating income. \begin{tabular}{|l|r|r|} \hline Operating income increases by & 73.60 & % \\ \hline Dollar increase in operating income & & \\ \hline \end{tabular}
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