Keebee Inc. Sells laptops for 1,000 per unit. Variable costs per unit are $400.00 monthly fixed costs are $2,400,000. The contribution margin income statement for last month as follow

Sales price $1,000.00 per unit for 6,000 units $6,000,000

Variable costs $400.00 per unit for 6,000 units 2,400,000

Contribution margin $600.00 for 6,000 units $3,600,000

Fixed costs 2,400,000

Profit 1,200,000

1. Compute the degree of operating leverage for last month

2. All else equal, if the sales revenue increases by 20 percent, compute the percentage of profit increase