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Splish Brothers's vice president of finance has offered another option. He suggests a different system that combines personal service at key points in the cafeteria

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Splish Brothers's vice president of finance has offered another option. He suggests a different system that combines personal service at key points in the cafeteria line with a less expensive automated self -service system for the other items. The financial information on this system is given below: Determine the degree of operating leverage for this option. (Round answer to 2 decimal places, es. 15.25.) (1) (2) How much would net income increase if sales increased by $302,000 ? (Round answer to 2 decimal places, eg. 15.25\%) Net income % (3) Using the margin of safety ratio, how large of a decline in sales could this optiop sustain before operating at a loss. (Round margin of safety ratio to 2 decimal places, e.g. 0.25 and decline in sales to 0 decimal places, es. 125.) Margin of safety ratio Decline in sales

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