Mahaxay Corporation has provided its contribution format income statement for April.

Sales	$201,6000
Variable expenses	$129,600
Contribution Margin	$72,000
Fixed expenses	$63,600
Net operating income	$8,400

Required:

a. Compute the degree of operating leverage to two decimal places.

b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 9% increase in sales.