Required information (The following information applies to the questions displayed below. Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store: Sales price per pair of sandals Variable expenses per pair of sandals 34 17 Contribution margin per pair of sandals S 17 Fixed expenses per year Building rental Equipment depreciation Selling Administrative $ 12,800 12,800 10,200 15,200 Total fixed expenses 51,000 5. Refer to the original data. During the first year, the store sold only 4,000 pairs of sandals and reported the following operating results: Sales (4,000 pairs) Variable expenses Contribution margin Fixed expenses $136,000 68,000 68,000 51,000 $ 17,000 Net operating income a. What is the store's degree of operating leverage? b. Angie is confident that with a more intense sales effort and with a more creative advertising program she can increase sales by 50 % next year. Using the degree of operating leverage, what would be the expected percentage increase in net operating income if Angie is able to increase sales by 50% ? aDegree of operating leverage b. Expected percentage increase in net operating income %