Last year Baker-Huggy Inc. had fixed costs of

$100,000

and net operating income of

$27,000.

If sales increase by

19

percent, by how much will the firm's NOIincrease? What would happen to the firm's NOI if sales decreased by

20

percent?

Question content area bottom

Part 1

If sales increase by

19%,

the change in the firm's NOI will be

a decrease

an increase

of

enter your response here%.

(Select from the drop-down menu and round to two decimal places.)