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Singh Co. reports a contribution margin of $726,000 and fixed costs of $484,000. (1) Compute the company's degree of operating leverage. (2) If sales increase by 20%, what amount of income will Singh Co. report? Degree of operating leverage Percent change in income Amount of income reported %

Singh Co. reports a contribution margin of $726,000 and fixed costs of $484,000. (1) Compute the company's degree of operating leverage. (2) If sales increase by 20%, what amount of income will Singh Co. report? Degree of operating leverage Percent change in income Amount of income reported %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Singh Co. reports a contribution margin of $726,000 and fixed costs of $484,000. (1) Compute the company's degree of operating leverage. (2) If sales increase by 20%, what amount of income will Singh Co. report? Degree of operating leverage Percent change in income Amount of income reported Show Transcribed Text Margin of safety Zhao Co. has fixed costs of $390,600. Its single product sells for $181 per unit, and variable costs are $119 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales. Dollars Percent % % J
Transcribed Image Text:Singh Co. reports a contribution margin of $726,000 and fixed costs of $484,000. (1) Compute the company's degree of operating leverage. (2) If sales increase by 20%, what amount of income will Singh Co. report? Degree of operating leverage Percent change in income Amount of income reported Show Transcribed Text Margin of safety Zhao Co. has fixed costs of $390,600. Its single product sells for $181 per unit, and variable costs are $119 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales. Dollars Percent % % J
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