Solve this general accounting question During the most recent fiscal period, Kajing LTDhad a contribution margin of $50,000 and anoperating profit of $20,000 on sales of $80,000.Calculate Kajing's:a) operating leverage, andb) the amount of its profit for next year assumingsales increase to $96,000.

Step 1: Define Operating LeverageThe ratio of the contribution margin relative to the operating…

Answered: During the most recent fiscal period,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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During the most recent fiscal period, Kajing LTD had a contribution margin of $50,000 and an operating profit of $20,000 on sales of $80,000. Calculate Kajing's: a) operating leverage, and b) the amount of its profit for next year assuming sales increase to $96,000.