Using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. Show the effect of DOL using the graph with an interpretation within 180 words.

• Use the below information to fill out the income statement and answer the questions 4-10 below: Selling Price per Unit Number of Units Total Dollars Sales Revenue $40.00 Variable Costs |600,000 Contribution Margin Fixed Costs 240,000 Net Income If OPEARATING LEVERAGE is 5 4. What is Net Income ?

A firm's degree of combined leverage (DCL) is equal to its degree of operating leverage.___leverage (DFL)       Oa Plus   Ob. Minus   Oc Divided by     Od Multiplied by

Use the following information about Rat Race Home Security, Inc. to answer the questions: Average selling price per unit $324. Variable cost per unit $187 Units sold 449 Fixed costs $8,589 Interest expense 17,204  Based on the data above, what will be the resulting percentage change in earnings per share of Rat Race Home Security, Inc. if they expect operating profit to change 4.2 percent? (You should calculate the degree of financial leverage first). (Write the percentage sign in the "units" box).