Sales (30,000 units) Tk.15,00,000 Tk.50 Variable Expense 12,00,000 40 Contribution Margin 300,000 Tk. 10 Fixed Expenses 220,000 Net Operating Income 80,000 Refer to original data. Compute company’s margin of safety in both dollar and percentage form. Compute company’s degree of operating leverage at present level of sales. 7. If sales increase by 7.5%, by what percentage would you expect net operating income to increase?
Sales (30,000 units) Tk.15,00,000 Tk.50 Variable Expense 12,00,000 40 Contribution Margin 300,000 Tk. 10 Fixed Expenses 220,000 Net Operating Income 80,000 Refer to original data. Compute company’s margin of safety in both dollar and percentage form. Compute company’s degree of operating leverage at present level of sales. 7. If sales increase by 7.5%, by what percentage would you expect net operating income to increase?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Q1.
Sales (30,000 units) |
Tk.15,00,000 |
Tk.50 |
Variable Expense |
12,00,000 |
40 |
Contribution Margin |
300,000 |
Tk. 10 |
Fixed Expenses |
220,000 |
|
Net Operating Income |
80,000 |
- Refer to original data. Compute company’s margin of safety in both dollar and percentage form.
- Compute company’s degree of operating leverage at present level of sales. 7. If sales increase by 7.5%, by what percentage would you expect net operating income to increase?
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