Actual operating results for the shop are presented below: S 250,000.00 VC 100,000.00 CM 150,000.00 FX 120,000.00 NI 30,000.00 Required: Compute the Degree of Operating Leverage Factor Using the said concept, how many percent would income increase if the sales increase by 10%?
Actual operating results for the shop are presented below: S 250,000.00 VC 100,000.00 CM 150,000.00 FX 120,000.00 NI 30,000.00 Required: Compute the Degree of Operating Leverage Factor Using the said concept, how many percent would income increase if the sales increase by 10%?
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 11P
Related questions
Question
- Actual operating results for the shop are presented below:
S |
250,000.00 |
VC |
100,000.00 |
CM |
150,000.00 |
FX |
120,000.00 |
NI |
30,000.00 |
Required:
- Compute the Degree of Operating Leverage Factor
- Using the said concept, how many percent would income increase if the sales increase by 10%?
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