Shorter Company's degree of operating leverage is found to be 2.4 this year. Shorter expects to increase its sales by 20% next year. What would be the percent change in operating income expected by Shorter in the coming year? O 48% 120% 8.33% O 12% If the variable cost ratio goes down, which of the following is TRUE? O Both the contribution margin and the break-even point will decrease. The contribution margin will decrease and the break-even point will increase. The contribution margin will increase and the break-even point will decrease. O Both the contribution margin and the break-even point will increase. Question 17 Jellico Inc. sells a single product for $50. At the budgeted level of sales of 5,000 units during the next month, the company expects the following business expenses to occur: Total variable expenses $130,000 Total fixed expenses $84,000 How many units of products need to be sold to earn a target profit of $18,000? O 3,923 O 3,500 O 2,040 O 4,250