Concept Introduction:
Degree of operating leverage:
The Degree of operating leverage shows the relation between change in net operating income and change in sales. The formulas for degree of operating leverage are as follows:
Requirement-1:
The Degree of operating leverage
Concept Introduction:
Degree of operating leverage:
The Degree of operating leverage shows the relation between change in net operating income and change in sales. The formulas for degree of operating leverage are as follows:
Requirement-2:
The Change in Net income after decrease in sales by 5%
Concept Introduction:
Degree of operating leverage:
The Degree of operating leverage shows the relation between change in net operating income and change in sales. The formulas for degree of operating leverage are as follows:
Requirement-3:
To Prepare:
The Contribution margin income statement if sales decreases by 5%
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