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Required information [The following information applies to the questions displayed below) Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store theat

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Required information [The following information applies to the questions displayed below) Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store theat 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 20 12 8 Contribution margin per pair of sandals Fixed expenses per year: Building rental Equipment depreciation Selling Administrative 3,200 4,0e0 2,400 6,400 $ 16,000 Total fixed expenses 5. Refer to the original data. During the first year, the store sold only 2,500 pairs of sandals and reported the following operating results $ 50,000 30,000 20,000 16,000 $ Sales (2,500 pairs) Variable expenses Contribution margin Fixed expenses 4,e00 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 Angle Iis able to Increase sales by 50 %? Degree of operating leverage a. % b. Expected percentage increase in net operating income

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