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Check my w Required information The Foundational 15 (LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7, LO5-8] (The following informat
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Answer #1

Contribution margin = $15,000 - $3,120 = $11,880

Net operating income remains the same.

Degree of operating leverage = $11,880 / $2,880 = 4.13

% increase in net operating income = Degree of operating leverage X % increase in sales

= 4.13 X 5

= 20.65%

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