Saturn has the following information available: Sales (60,000 units x $30 per unit) Variable Costs (60,000 units x $9 per unit) Contribution Margin Fixed Costs Net Income $ 1,800,000 540,000 $1,260,000 980,000 $ 280,000 1. I expect the degree of operating leverage to be (enter low or high) because there is a (enter higher or lower) proportion of fixed costs. 2. The degree of operating leverage is 3. If unit sales decrease by 8% (or.08), the expected percentage decrease in net income is 4. If unit sales decrease by 8% (or .08), the predicted dollar amount of change in the current $280,000 of net income $280,000 current net income x If unit sales decrease by 5% (or .05), the new variable costing income statement would appear as follows: Sales Variable Costs Contribution Margin Fixed Costs Net Income