PART B

Sheridan Sports Hut provides individual instruction and coaching to children participating in the city's baseball, softball, basketball, and soccer youth leagues. Last year's results were as follows Sales revenue $850,000 Variable expenses $10,000 Contribution margin 340,000 Fixed expenses 198,333 Operating income $141.667 (a) Your answer is correct What is Sheridan Sports Hut's degree of operating leverage? (Round answer to 2 decimal places, e.g. 52.75.) 2:39 Operating leverage Your answer is incorrect ir Anna Sheridan, the company's president, is successful in increasing sales revenue by 5%, by what percent will the company's operating income increase? (Round answer to 2 decimal places, eg. 52.75%) 96 Increase in operating income