Last year, Neptune Corporation had sales of $808,000 and paid taxes of $113,000. Because of the low interest rate environment , the firm also borrowed some money from the local bank and paid $52,000 in interest expense. In addition, the firm incurred Variable costs and Fixed Costs of $223,000 and $242,000 respectively . If sales increase by 5%, what should be the percentage change in operating income ? SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. IF YOUR ANSWER IS 7.7011%, FOR EXAMPLE , ENTER 7.70 .

Last year, Neptune Corporation had sales of $808,000 and paid taxes of $113,000. Because of the low interest rate environment, the firm also borrowed some money from the local bank and paid $52,000 in interest expense. In addition, the firm incurred Variable costs and Fixed Costs of $223,000 and $242,000 respectively. If sales increase by 5%, what should be the percentage change in operating income? SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. IF YOUR ANSWER IS 7.7011%, FOR EXAMPLE, ENTER 7.70