If unit sales are projected to decrease by 8%, use your degree of operating leverage to predict the change in net income. Enter the DOLLAR amount of the expected change in net income Will the change in net income be an increase or a decrease? Prepare a net variable costing income statement reflecting an 8% decrease in unit sales. What was the dollar amount of change in the net income?

Questions 1-4 Luigi has the following information available: Sales (60,000 units x $25 per unit) Variable Cost (60,000 units x $15 per unit) Contribution Margin Fixed Costs Net Income 1,500,000 900,000 600,000 450,000 150,000