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Shambo Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units) $ 60,000
Shambo Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.
Sales (3,000 units) | $ | 60,000 |
Variable expenses | 42,000 | |
Contribution margin | 18,000 | |
Fixed expenses | 13,200 | |
Net operating income | $ | 4,800 |
Using the degree of operating leverage, the estimated percent increase in net operating income as the result of a 20% increase in sales is closest to: (Round your intermediate calculations to 1 decimal place.)
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