Manning Company produced and sold 45,000 units of a single product last year, with the following results:

Sales Revenue	$1,350,000
Manufacturing costs:
Variable	585,000
Fixed	270,000
Selling costs:
Variable	40,500
Fixed	54,000
Administrative costs:
Variable	184,500
Fixed	108,000
A. Prepare a contribution format income statement B. Calculate the operating leverage C. Based on your answer in C, calculate the estimated % increase in net operating income if there is a 15% increase in sales.