Below are the income statements of Company 007, Company 123 and Company 888. These companies are engaged in the manufacturing of local bags. Company 007 uses highly skilled labor workers while Company 888 uses machineries in all the manufacturing process. Company 123 uses highly skilled labor workers in some part of the production and machinery in other part of the production process. 1.Degree of Operating Leverage for Co. 888 2.Degree of Operating Leverage for Co. 007 3.Degree of Operating Leverage for Co. 123
Below are the income statements of Company 007, Company 123 and Company 888. These companies are engaged
in the manufacturing of local bags. Company 007 uses highly skilled labor workers while Company 888 uses machineries in all
the manufacturing process. Company 123 uses highly skilled labor workers in some part of the production and machinery in
other part of the production process.
1.Degree of Operating Leverage for Co. 888
2.Degree of Operating Leverage for Co. 007
3.Degree of Operating Leverage for Co. 123
4.% of Increase in Income for Co. 123
5.% of Increase in Income for Co. 888
6.% of Increase in Income for Co. 007
7.Increase in income for Co. 123
8.Total income for Co. 007 with 5% increase in sales
9.Increase in income for Co. 888
10.Total income for Co. 123 with 5% increase in sales
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