Question 22 1p Last year, Lexington had sales of $703,000 and paid taxes of $95,000. Because of the low interest rate environment, the firm also borrowed some money from the local bank and paid $49,000 in interest expense. In addition, the firm incurred Variable costs and Fixed Costs of $289,000 and $122,000 respectively. If sales increase by 5%, what should be the increase in operating income? SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. IF YOUR ANSWER IS 7.7011%, FOR EXAMPLE, ENTER 7.70