Brentwood Manufacturing had a contribution margin of $120,000 and an operating profit of $48,000 on sales of $300,000 during the current fiscal year. Calculate Brentwood's: a) operating leverage b) the expected operating profit for next year if sales increase to $360,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 5EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...
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i need this question answer General accounting

Brentwood Manufacturing had a contribution margin
of $120,000 and an operating profit of $48,000 on sales
of $300,000 during the current fiscal year.
Calculate Brentwood's:
a) operating leverage
b) the expected operating profit for next year if sales
increase to $360,000
Transcribed Image Text:Brentwood Manufacturing had a contribution margin of $120,000 and an operating profit of $48,000 on sales of $300,000 during the current fiscal year. Calculate Brentwood's: a) operating leverage b) the expected operating profit for next year if sales increase to $360,000
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