Innsbruck Company's October $2022$ monthly income statement is given below:

Percentage

Sales

Less: Variable expenses

Contribution margin

Less: Fixed expenses

Net income

Required:

Compute the company's degree of operating leverage.

Degree of operating leverage

Using the degree of operating leverage, estimate the impact on net income of a $10\%$ increase in sales. $($Do not round intermediate

calculations.$)$

Verify your estimate from Requirement $(2)$ by constructing a new income statement for the company assuming a $10\%$ increase in

sales. $($Do not round intermediate calculations.$)$