If sales are $525,000, variable costs are 64% of sales, and operating income is $50,000, Calculate the

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If sales are $525,000, variable costs are 64% of sales, and operating income is $50,000,

Calculate the following;

a. CM ratio ;

b. Degree of operating leverage;

c. The impact of a 20% increase in sales

Related Book For answer-question

Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Posted Date: Jan 06, 2021 09:09 PM

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If sales are $525,000, variable costs are 64% of sales, and operating income is $50,000, Calculate the

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Answer Sales 525000 Variable cost 64 of sales a Contribution 525000 x 1064 189000 Contribu... View the full answer

Fundamentals of corporate finance

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