Save Suzanne sells authentic Amish quilts on her website. Suppose Suzanne expects to sell 2,000 quilts during the coming year. Her average sales price per quilt is $400, and her average cost per quilt is $300. Her fixed expenses total $100,000. Compute Suzanne's operating leverage factor at an expected sales level of 2,000 quilts. If sales volume increases 12%, by what percentage will her operating income change? Prove your answer by calculating operating income at a sales volume of 2,000 and at a sales volume of 2,240. Compute her operating leverage factor. (Round your answer to two decimal places.) First, identify the formula, then compute the operating leverage factor. BO Operating leverage factor ce 2.50 If sales volume increases 10%, by what percentage will her operating income change? (Round the percentage to the nearest tenth percent, XX Operating income will increase by 25.0 %. Prove your answer. (Round the percentage to the nearest tenth percent, XX%.) Original volume (quilts) Add: Increase in volume New volume (quilts) Multiplied by: Unit contribution margin New total contribution margin Less: Fixed expenses New operating income Less: Operating income before change in volume Increase in operating income. Percentage change % Help me solve this Video Get more help - 4 Clear all