Fielder Productions reports the following information: 
Required:
(a)Calculate Fielder's degree of operating leverage (DOL).
(b)Fielder Productions forecasts a 6% increase in sales.What is the expected effect in percent on pretax income?
Definitions:
Participative Behaviour
Actions that involve taking part or contributing in a group or activity, often referring to a management style that includes employees in decision making.
Path-Goal Theory
A leadership theory that suggests leaders can increase subordinate satisfaction and performance by clarifying paths to goals and removing obstacles to performance.
Trait Approach
A theory in psychology that suggests individual personalities are composed of broad dispositions, or traits, which influence behavior.
Fiedler's Contingency Theory
A leadership theory proposing that effective group performance depends on the proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control to the leader.
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