The Kandy Shop has an operating income of $17,000.

a) Calculate the degree of operating leverage for each of the independent cases (assuming operating income is held constant): i. Contribution Margin is $54,000. ii. CM ratio is 60% and revenue is $149,000. iii. Selling price per unit is $38, variable costs per unit are $9 and it sold 3,100 units. Do not enter dollar signs or commas in the input boxes. Round contribution margin and operating income to the nearest whole number. Round the degree of operating leverage to 2 decimal places.

	Contribution Margin	Operating Income	Degree of Operating Leverage
i.	$Answer	$Answer	Answer
ii.	$Answer	$Answer	Answer
iii.	$Answer	$Answer	Answer

b) Which scenario has the largest degree of operating leverage?