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Using the degree of operating leverage, what is the estimated percentage increase in net operating income of a 8% increase in sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Maple Industries prepared the following contribution format income statement based on a sales volume of 2,500 units (the relevant range of production is 1,000 units to 3,000 units): Sales $ 45,000 Variable expenses 24,000 Contribution margin 21,000 Fixed expenses 13,500 Net operating income $ 7,500

Using the degree of operating leverage, what is the estimated percentage increase in net operating income of a 8% increase in sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Maple Industries prepared the following contribution format income statement based on a sales volume of 2,500 units (the relevant range of production is 1,000 units to 3,000 units): Sales $ 45,000 Variable expenses 24,000 Contribution margin 21,000 Fixed expenses 13,500 Net operating income $ 7,500

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 16E
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Using the degree of operating leverage, what is the estimated percentage increase in net operating income of a 8% increase in sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Maple Industries prepared the following contribution format income statement based on a sales volume of 2,500 units (the relevant range of production is 1,000 units to 3,000 units): Sales $ 45,000 Variable expenses 24,000 Contribution margin 21,000 Fixed expenses 13,500 Net operating income $ 7,500
Transcribed Image Text:Using the degree of operating leverage, what is the estimated percentage increase in net operating income of a 8% increase in sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Maple Industries prepared the following contribution format income statement based on a sales volume of 2,500 units (the relevant range of production is 1,000 units to 3,000 units): Sales $ 45,000 Variable expenses 24,000 Contribution margin 21,000 Fixed expenses 13,500 Net operating income $ 7,500
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