Chapter 14, Problem 14.20P

Management anticipates fixed costs of $65,000 and variable costs equal to 35% of sales. What will pretax income equal if sales are $320,000?

Calculate the segment return on Assets for Segment X.

MID Company had originally expected to earn operating income of $130,000 in the coming year. MID's degree of operating leverage is 3.5. Recently, MID revised its plans and now expects to increase sales by 23% next year. What is the percent change in operating income expected by MID in the coming year?