h. Compute degree of operating leverage. If Nanook anticipates a 30% increase in sales, what is the percentage increase in operating income? Use the original data. 103500 i. Nanook wants to achieve operating income of $55,000 next year. Management is considering two different alternatives. Evaluate each alternative separately. Does either option meet or exceed Nanook's targeted operating income of $55,000? 1. Spend $10,000 on advertising, which should result in a 20% increase in sales. 2. Increase the selling price to $22 and decrease variable costs to $8.50. This alternative would result in a 5% decrease in sales. h. Compute degree of operating leverage. If Nanook anticipates a 30% increase in sales, what is the percentage increase in operating income? Use the original data. 103500 i. Nanook wants to achieve operating income of $55,000 next year. Management is considering two different alternatives. Evaluate each alternative separately. Does either option meet or exceed Nanook's targeted operating income of $55,000? 1. Spend $10,000 on advertising, which should result in a 20% increase in sales. 2. Increase the selling price to $22 and decrease variable costs to $8.50. This alternative would result in a 5% decrease in sales