Question: Faber Company a merchandising firm reported the following operating results

Faber Company, a merchandising firm, reported the following operating results:


Required
a. Reconstruct the income statement using the contribution margin format.
b. Calculate the magnitude of operating leverage.
c. Use the measure of operating leverage to determine the amount of net income that Faber will earn if sales revenue increases by 10percent.
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  • CreatedFebruary 07, 2014
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