Sales $400,000 106,000 Variable expenses Contribution margin Fixed expenses 294,000 196,000 Operating income $ 98,000 a. Compute the degree of operating leverage at the current level of sales. Degree of operating leverage b. The president expects sales to increase by 15% next year. By how much should operating income increase? Operating income increases by
Sales $400,000 106,000 Variable expenses Contribution margin Fixed expenses 294,000 196,000 Operating income $ 98,000 a. Compute the degree of operating leverage at the current level of sales. Degree of operating leverage b. The president expects sales to increase by 15% next year. By how much should operating income increase? Operating income increases by
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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