In 20A, Domingo presented total variable costs at P687.50; total fixed costs at P6,750,000; sales price per unit P1,250; sold 20,000 units; tax rate at 40%. Compare the operating leverage from 20A to 20B with the same variable and fixed costs, and sales price, but 25,000 units are sold? Use Operating leverage = CM divided by Net Income before tax, *

In 20A, Domingo presented total variable costs at P687.50; total fixed costs at P6,750,000; sales price per unit P1,250; sold 20,000 units; tax rate at 40%. Compare the operating leverage from 20A to 20B with the same variable and fixed costs, and sales price, but 25,000 units are sold? Use Operating leverage = CM divided by Net Income before tax, *

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In 20A, Garcia presented total variable costs at P687.50; total fixed costs at P6,750,000; sales price per unit P1,250; sold 20,000 units; tax rate at 40%. Compare the operating leverage from 20A to 20B with the same variable and fixed costs, and sales price, but 25,000 units are sold? Use Operating leverage = CM divided by Net Income before tax. Increase from 3.21 to 4.17. Decrease from 2.50 to 1.92. Increase frin 1.92 to 2.50. Decrease from 4.17 to 3.21.
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Need answer with correct calculation
Only part d
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