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Susy sells authentic Amish quilts on her website. Suppose Susy expects to sell 1,800 quilts during the coming year. Her average sales price per quilt

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Susy sells authentic Amish quilts on her website. Suppose Susy expects to sell 1,800 quilts during the coming year. Her average sales price per quilt is $350, and her average cost per quilt is $150. Her fixed expenses total $135,000. Compute Susy's operating leverage factor at an expected sales level of 1,800 quilts. If sales volume increases 15%, by what percentage will her operating income change? Prove your answer by calculating operating income at a sales volume of 1,800 and at a sales volume of 2,070. Compute her operating leverage factor. (Round your answer to two decimal places.) First, identify the formula, then compute the operating leverage factor = Operating leverage factor If sales volume increases 15%, by what percentage will her operating income change? (Round the percentage to the nearest tenth percent, X.X%.) Operating income will increase by %. Prove your answer. (Round the percentage to the nearest tenth percent, X.X%.) 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

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