Statement of Comprehensive Income for Brooklyn Company for the current year is Sales P750,000 Variable cost 600,000 Contribution margin 150,000 Fixed cost 100,000 Operating income P50,000 Required: a. Break-even point b. Margin of safety c. Margin of safety ratio d. Degree of operating leverage e. Suppose the company experiences a 30% increase in revenues, compute for the percentage change in profits.
Statement of Comprehensive Income for Brooklyn Company for the current year is Sales P750,000 Variable cost 600,000 Contribution margin 150,000 Fixed cost 100,000 Operating income P50,000 Required: a. Break-even point b. Margin of safety c. Margin of safety ratio d. Degree of operating leverage e. Suppose the company experiences a 30% increase in revenues, compute for the percentage change in profits.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Statement of Comprehensive Income for Brooklyn Company for the current year is
Sales P750,000
Variable cost 600,000
Contribution margin 150,000
Fixed cost 100,000
Operating income P50,000
Required:
a. Break-even point
b. Margin of safety
c. Margin of safety ratio
d. Degree of operating leverage
e. Suppose the company experiences a 30% increase in revenues, compute for the
percentage change in profits.
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