Eickhoff Corporation's contribution format income statement for the most recent month follows: 
Required:
a. Compute the degree of operating leverage to two decimal places.
b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 1% increase in sales.
Definitions:
Observer Drift
A phenomenon where there is a gradual shift or deviation in the way observers record or interpret information over time.
External Locus of Control
A belief system where individuals think that external forces or events are responsible for their life outcomes.
Reciprocal Determinism
A concept in social cognitive theory that suggests individual behavior, environmental factors, and personal cognitive factors influence each other in a bidirectional manner.
Philosophy Class
A philosophy class explores fundamental questions regarding existence, knowledge, values, reason, mind, and language through analytical and critical discussion.
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