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Sally sells authentic Amish quilts on her website. Suppuse Sally expects to sell 1,000 quilts during the coming year. Her average sales price per quill

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Sally sells authentic Amish quilts on her website. Suppuse Sally expects to sell 1,000 quilts during the coming year. Her average sales price per quill is $300, and her average cost per quill is $150. Her xed expenses total $75,000. Compute Sally's operating leverage factor at an expected sales level at 1,000 quills. If sales volume increases 0%. by what percentage will her operating income change? Prove your answer by calculating operating income at a sales volume cl 1,000 and at a sales volume oi 1,000. Compute her operating leverage (actor. (Round your answer to two decimal places.) First, identify the formula. then compute the operating leverage factor. Contribution margin e Operating income = Operating leverage taclor 5 150,000 + $ 75.000 : 2.00 If sales volume increases 8%, by what percentage will her operating income change? (Round the percentage to the nearest tenth percent, X,X%,) Operating income will increase by 16.0 \"/0, Prove your answerl (Round the percentage to the nearest tenth percent, xoxo/a.) Original volume (quilts) 1000 Add: increase in volume 80 New volume (quilts) 1080 Multiplied by: Unit contribution margin New total contrlouticri margin Less: Fixed expenses New operating income Less: Operating income before change in volume Increase in operating income Percentage change "/0

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