Sells authentic Amish quilts on her website. Suppose Sally expects to sell 1 comma 800 quilts during the coming year. Her average sales price per quilt is $ 350, and her average cost per quilt is $ 150. Her fixed expenses total $ 135 comma 000. Compute Sally's operating leverage factor at an expected sales level of 1 comma 800 quilts. If sales volume increases 15%, by what percentage will her operating income change? Prove your answer by calculating operating income at a sales volume of 1 comma 800 and at a sales volume of 2 comma 070.
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Sells authentic Amish quilts on her website. Suppose Sally expects to sell 1 comma 800 quilts during...
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