questions 6-16 use the Westfield Corporation case and Excel docs in Files. o. What is the company's degree of operating leverage for years 6, 7, and 8? Yr ,10b 5b0 .S0 Yr8 2,532, 32.0 4.58 4:43 7. Applying the degree of operating leverage concept: assuming that the degree of operating leverag same as year 8, how much would net operating income change as a percentage, if sales are 3% greater than projected in the upcoming year? Fixed expenses will remain in the relevant range. 8. As a business manager would you be feeling a sensitivity in sales level with year 8's degree of operating leverage? 9. Does the trend in the degree of operating leverage from year 6 to year 7 to year 8 suggest anything to you? Westfield Corporation Contribution Format Income Statement Year 7 -Yr 7 % Net Sales Revenue s18370,000 100.00% s2 1.331.000 100.00% s24,360500 100.00% s30762309 100 00% less: Variable Expenses Variable Production 7,663,440 1,600,000 8,554 680 2,090,000 10.064618 4132% 2.950.000 12.11% 0 00% 13,01461853 43% 0 00% 0 00% 0 00% 000% Variable Marketing Variable Administrative Total Variable Expenses 9.263.440 5043% 10.644.680 49 90% Contribution Margin less: Fixed Expenses Fixed Production Fixed Marketing 9,106,560 49.57% 10.686320 50.10% 11.345882 46.57% 30,762,309 1000056 2,103,000 3,758,000 1845000 7.706,000 2.246 000 4,104.000 2004 000 83540003916% 2.523.000 4,060,000 2.202.000 8.785.000 10.36% 16 67% 904% 36 06% 0 00% 0 00% 0 00% 000% 8 Fixed Administrative Total Fixed Expenses 41.95% so 100 00% Net Operating Income