Use the following information for questions 16 and 17. The following information relates to Francisca Company. Degree of operating leverage Gross profit (margin) rate Margin of safety percentage Contribution margin ratio 2.5 24% 40% 60% 16. If Francisca's sales increase by 20%, by what percentage will its net income increase? a. 4.8% b. 8% c. 12% d. 50% 17. Francisca wants to give its sales staff a $60,000 increase in salary but still wants to make the same net income. If Francisca gives this increase, by how much would sales at Francisca have to increase in order for the company to maintain its current net income level? a. $60,000 b. $100,000 c. $150,000 d. $250,000 18. Sunripe Company manufactures and sells two types of beach towels, standard and deluxe. Sunripe expects the following operating results next year for each type of towel: Sales Variable expenses (total) Standard Deluxe $450,000 $50,000 $360,000 $20,000 Sunripe expects to have a total of $57,600 in fixed expenses next year. What is Sunripe's breakeven point next year in sales dollars? a. $72.000 b. $144,000 c. $192,000 d. $240,000 e. None of the above answers is correct