Langin Corporation has provided its contribution format income statement for June. 
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 14% increase in sales.
Definitions:
Principal
The original sum of money borrowed in a loan, or the amount of the investment, excluding any interest or growth.
Present Value
The present value of an anticipated sum of money or series of cash flows, considering a certain return rate.
Discounting
The process of determining the present value of a payment or a stream of payments that will be received in the future.
Capital Investments
Financial investments in assets such as property, industrial equipment, or technology, intended to improve a company's capacity or efficiency over the long term.
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