QS 18-22 (Algo) Computing and analyzing operating leverage LO A2 Singh Company reports a contribution margin of $940,000 and fixed costs of $705,000. (1) Compute its income. (2) Compute its degree of operating leverage. (3) If sales increase by 15%, what amount of income is expected? 1. Income 2. Degree of operating leverage
QS 18-22 (Algo) Computing and analyzing operating leverage LO A2 Singh Company reports a contribution margin of $940,000 and fixed costs of $705,000. (1) Compute its income. (2) Compute its degree of operating leverage. (3) If sales increase by 15%, what amount of income is expected? 1. Income 2. Degree of operating leverage
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:QS 18-22 (Algo) Computing and analyzing operating leverage LO A2
Singh Company reports a contribution margin of $940,000 and fixed costs of $705,000. (1) Compute its income. (2) Compute its
degree of operating leverage. (3) If sales increase by 15%, what amount of income is expected?
1. Income
2. Degree of operating leverage
3. Amount of expected income if sales increase by 15%
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