Johnson Manufacturing produces metal picture frames. The company's external income statements for the last two years are given below:

The company has no beginning or ending inventories. Manufacturing costs are both variable and fixed, while S,G&A costs are strictly fixed. Next year, the company expects sales to increase by 20%.

How much total contribution margin was earned LAST year?

What was the degree of operating leverage THIS year?

If sales increase by 20% and the cost structure remains the same as in prior years, how much net operating income should they earn NEXT year (4 points)?How much total contribution margin was earned LAST year?