Global Company has the following information available:

Sales (90,000 units)$2,700,000Variable Costs (90,000 units)1,839,000Contribution Margin$861,000Fixed Costs451,000Net Income$410,000

(Note, you may enter your degree of operating leverage and change in net income as either a decimal, for example 3.00 or .54, or as apercentage, for example, 300% or 54%--if you type the answer in as a percentage, be sure to include the percent sign)

1. I expect the degree of operating leverage to be (type low or high)because there is a (type higher or lower)proportion of fixed costs to variable costs.
2. The degree of operating leverage is.
3. If unit sales increase by 6% (or .06), the expectedpercentage(or decimal) increase in current net income is
4. If unit sales increase by 6% (or .06), the predicteddollar amountof change in the current net income is.

If unit sales increase by 6% (or .06), the new variable costing income statement would appear as follows:

SalesVariable CostsContribution MarginFixed CostsNet Income