Net Sales (1,800,000/5 = 360,000)

Sales 1,800,000

Variable Cost 1,188,000

CM 612,000

Fixed Cost 408,000

Net Income 204,000

Hanna Company manufactures and sells juice drinks in tetra packs of various flavors. Hanna set the selling price at P5 per 16oz pack. For the year 2022, the company estimates the following revenues and expenses. Net sales 1,800,000 Direct materials 420,000 Direct labor 362,000 Variable manufacturing overhead 316,000 Fixed manufacturing overhead 283,000 Variable selling and administrative expenses 90,000 Fixed selling and administrative expenses 125,000 Required (independent cases): a. What is the degree of operating leverage? b. What is the net income if the sales increase by 45% ? c. What is the net income if the sales decrease by 20% d. What is the sales if net income increased by 60% ? e. What is the sales if the net income decreased to 100,000