Homework Answers
Net operating income = 1,650,000-461,000-857,000-33,000-63,000-73,000-28,000 = 135,000
Contribution margin = 1,650,000-857,000-63,000-28,000 = 702,000
Degree of operating leverage = Contribution margin/Operating income
= 702,000/135,000
= 5.2
Increase in net income = Operating leverage*increase in sales
= 5.2*15
| Percentage increase in net income = 78% |
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year, and variable expenses are $48 per game. Production of the
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1-b. Compute the degree of operating...
NOTE These are all part of Question 4
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: points Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 2,080,000 1,040,000 1,040,000 160,000 $ 880,000 8 00:50:49 eBook Required: Answer each question independently based on the original data: Print References 1. What is...
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