Tidal Technologies' Partial Income Statement: Sales Less: Variable Costs Contribution Margin Less: Fixed Costs $1,500,000 $900,000 $600,000 $300,000 Net Operating Income $300,000 What is Tidal Technologies' operating leverage?
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- 2. A company provided the following information: Sales Variable costs Fixed costs P500,000 P100,000 P200,000 | Required: A. What is the contribution margin ratio? 500,000 – 100,000 = 400,000 "Contribution Margin" 400,000/500,000 = 0.8 What is the level of sales in amount necessary to generate a profit of P40,000? C. What is the contribution margin ratio if the sales price is increased by 10%? Using the information in part C, what level of sales in amount is necessary to generate a profit of P40,000? D. B.Need helpCalculate Operating Leverage from the following ?Contribution = 100,000 Fixed Cost = 40,000 a. 2.5 b. 1.66 c. 0.4 d. None of these