If a company's total fixed cost increases by $10,000 and all other factors in the CVP analysis remain the same, which of the following is TRUE? O The contribution margin ratio will decrease. The margin of safety will increase. The break-even point will decrease. The degree of operating leverage will increase. Paney Company currently earns operating income of $520,000. Paney's degree of operating leverage at this level of business is 3.5. Paney predicts that sales will increase by 15% next year. What would be Paney's expected operating income for the coming year? $598,000 $78,000 $793,000 $273,000