The company's income statement for 2019 is:

Revenue 30,000

COGS 18,000

Gross profit 12,000

Less selling and

administrative expense 4,000

Operating income 8,000

Less taxes on income 2,800

Net income 5,200

1. Suppose that 80% of selling and administrative expense is fixed and 20% is variable.

What the percentage increase in sales needed to achieve a 10% increase in operating income.

2. Suppose that 80% of selling and administrative expense is fixed and 20% is variable.

What the level of sales needed to achieve a 10% increase in net income.