Question:

Maureen shows the following information for the last year of her bridge club:

Sales	$ 2,385
Less: Variable costs	$ 585
Contribution margin	$ 1,800
Less: Fixed costs	$ 1,152
Operating income	$ 648

The club had 225 players during the year.

Required:

Using cost-volume-profit analysis, answer the following questions.

What is the club's contribution margin ratio?

What is the club's breakeven point in players?

How many players would the club have to sign up to attain a target operating income of $1,728?

What is the club's margin of safety in numbers of players?

What is the club's degree of operating leverage?

Round your answer to 2 decimal places.

Use the rounded answer you just entered to calculate the answer to this question.

If sales increase by 15%, operating income would increase by $_______________.