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Junior Bodway, Inc., has provided the following budgeted data: Sales .................................. 10,000 units Selling price ...................... $50 per unit Variable expense ............... $35 per unit

Junior Bodway, Inc., has provided the following budgeted data: Sales .................................. 10,000 units Selling price ...................... $50 per unit Variable expense ............... $35 per unit Fixed expense .................... $180,000 Requirements: a) If the company sales increased by $ 1,00,000 and Advertising expenditure is $ 10,000 then how much net operating income will be increased? b) Calculate the DOL and if sales increased by 10% then how much % of profit will be increased.

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