Sandy sells authentic Amish quilts on her website. Suppose Sandy expects to sell 1,000 quilts during...
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Sandy sells authentic Amish quilts on her website. Suppose Sandy expects to sell 1,000 quilts during the coming year. Her average sales price per quilt is $300, and her average cost per quilt is $150. Her fixed expenses total $75,000. Compute Sandy's operating leverage factor at an expected sales level of 1,000 quilts. If sales volume increases 8%, by what percentage will her operating income change? Prove your answer by calculating operating income at a sales volume of 1,000 and at a sales volume of 1,080. Compute her operating leverage factor. (Round your answer to two decimal places.) First, identify the formula, then compute the operating leverage factor. Contribution margin Operating income Operating leverage factor %D Sandy sells authentic Amish quilts on her website. Suppose Sandy expects to sell 1,000 quilts during the coming year. Her average sales price per quilt is $300, and her average cost per quilt is $150. Her fixed expenses total $75,000. Compute Sandy's operating leverage factor at an expected sales level of 1,000 quilts. If sales volume increases 8%, by what percentage will her operating income change? Prove your answer by calculating operating income at a sales volume of 1,000 and at a sales volume of 1,080. Compute her operating leverage factor. (Round your answer to two decimal places.) First, identify the formula, then compute the operating leverage factor. Contribution margin Operating income Operating leverage factor %D
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