Suppose Katherine sells 1,600 posters. Use the following financial data ($34 ales price, $29 variable cost, $2,650 fixed expenses) to compute her operating leverage factor. If sales volume increases 6%, by what percent will Katherine's operating income change? Prove your answer.

Suppose Katherine sells 1,600 posters. Use the following financial data ($34 sales price. $29 variable cost, $2,650 fixed expenses) to compute her operating leverage factor. If sales volume increases 6%, by what percent will Katherine's operating income change? Prove your answer. First, identify the formula, then compute the operating leverage factor. (Round your answer to two decimal places.) = Operating leverage factor If sales volume increases 6%, by what percent will Katherine's operating income change? (Round the percentage change to one decimal place, X.X%) Operating income will increase by%. Prove your answer. (Round the percentage change to one decimal place, X.X%) Original volume (posters) Add: Increase in volume New volume (posters) 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 %