Mitzel Corporation has provided its contribution format income statement for May. 
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 an 18% increase in sales.
Definitions:
Reproduced Practices
Actions or behaviors that are continually replicated within a society, contributing to the preservation of its cultural norms.
Structures
The arranged and organized patterns of relationships and institutions that shape society.
Formal Rationality
A concept in sociology that refers to the practice of achieving goals through a logical and efficient method, often associated with bureaucracies.
Lifeworld
The world of living experience and subjective interpretations, as distinguished from objective realms of science and social structures.
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