$($Round your answers to two decimal places when needed and use rounded answers for all

future calculations.$)$

Contribution Margin $/$ Operating Income $=$ Decree of Operating LeverageWild$-$Water Works Water Park provides for a fun day by offering a variety of rides. Wild$-$Water

Works Water Park sells tickets at $$70$ per person as a one$-$day entrance fee. Variable costs per

person are $$38$ and fixed cost amount to $$139,000$ per month.

Wild$-$Water Works Water Park expects to sell $6,800$ tickets. Estimate the operating income if

sales increase by $15\%.$

Calculate the degree of operating leverage.

$($Round your answers to two decimal places when needed and use rounded answers for all

future calculations.$)$