Response to the following problem:
Burger Queen Restaurant had the following information available related to its operations from last year: Sales (150,000 units) $500,000 Variable Costs 200,000 Contribution Margin $300,000 Fixed Costs 150,000 Net Income $150,000
A. What is Burger Queen's operating leverage?
B. If sales increased by 30%, what would Burger Queen's net income be?