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Sagot :
The degree of operating leverage is 4 and the expected percentage change in income is 20%.
Contribution margin = $94,000
Pretax net income = $23,500
Degree of operating leverage = Total Contribution margin / pretax Net income
= 94,000/23,500
= 4
Increase in sales = 5%
Increase in income = Increase in sales volume x Degree of operating leverage
= 5 x 4
= 20%
Due to 5% increase in sales, income will increase by 20%.
Thus this is the answer about the degree of operating leverage and Percent change in income in a month.
To learn more about Operating leverage, refer: https://brainly.com/question/24278932
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