No OG W remental approach position, Angie Yes 5. Refer to the original data. During the first year, the store sold only 74,500 pairs of sandals and reported the following operating results: Sales (74,500 pairs) Variable expenses Contribution margin Fixed expenses Net operating income $ 238,400 71,520 $ 166,880 112.000 $ 54,880 a. What is the store's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 3.04 b. Angie is confident that with a more intense sales effort and with a more creative advertising program she can increase sales by 20% next year. What would be the expected percentage increase in net operating income? Use the degree of operating leverage concept to compute your answer. Round your percentage answer to 2 decimal places (.e.1234 should be entered as 12.34). Expected percentage increase in net operating income References eBook & Resources AD 4 do 812 PM 7/13/2019