g. If sales could increase by 20%, by how much in dollars would net operating income increase? By what percentage would net operating income increase? (Use the quick way, i.e. contribution margin concept and DOL, you have learned in class to answer these questions. Do not recalculate net operating income.)

h. Prepare a contribution format income statement assuming a sales increase by 20%. Compare your new net operating income with your answer in Question b and prove mathematically that your answers to the two questions in Question g are correct.

i. Ignore Questions g and h. If the cost per plain t-shirt is expected to increase by 20% and sales (in number of T-shirts) are expected to be 5% less, how much is your projected net operating income (or loss)?

j. Continue Question i. If the only expense you can cut is the salary paid to yourselves, how much salary should you cut in order to break even?