Hogue Sports Hut provides individual instruction and coaching tochildren participating in the city’s baseball, softball,basketball, and soccer youth leagues. Last year’s results were asfollows:
| Sales revenue | | $921,450 |
| Variable expenses | | 647,750 |
| Contribution margin | | 273,700 |
| Fixed expenses | | 154,700 |
| Operating income | | $119,000 |
B) If Anna Hogue, the company’s president, is successful inincreasing sales revenue by 5%, by what percent will the company’soperating income increase? (Round answer to 2 decimalplace, e.g. 13.25%.)
C) After achieving the sales increase in part (b), what will bethe company’s new operating income? (Round answer to 0decimal places, e.g. 25,000.)
D) After achieving the sales increasein part (b), what will be the company’s new operating leverage?(Round answer to 2 decimal places, e.g.0.38.)
