Puppy Co. Puppy Co. reported the following contribution margin income statement for 2020. Puppy Co. Contribution...
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Puppy Co. Puppy Co. reported the following contribution margin income statement for 2020. Puppy Co. Contribution Income Statement For Year Ended December 31, 2020 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) $2,160,000 1,728,000 Contribution margin 432,000 Fixed costs 324,000 Net operating income $108,000 6) Compute the company's degree of operating leverage for 2020. 7) Assume sales decrease by 5% in 2020, what is the company's net operating income (use the degree of operating leverage to compute)? Puppy Co. Puppy Co. reported the following contribution margin income statement for 2020. Puppy Co. Contribution Income Statement For Year Ended December 31, 2020 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) $2,160,000 1,728,000 Contribution margin 432,000 Fixed costs 324,000 Net operating income $108,000 6) Compute the company's degree of operating leverage for 2020. 7) Assume sales decrease by 5% in 2020, what is the company's net operating income (use the degree of operating leverage to compute)?
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Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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