Study Volt has the following financial information: 89,200 $ 8,920,000 $2,230,000 Unit Sales Revenue Variable Costs...

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Study Volt has the following financial information: 89,200 $ 8,920,000 $2,230,000 Unit Sales Revenue Variable Costs Contribution Margin $ 6,690,000 Fixed Costs $1,832,000 Operating Income $ 4,858,000 Question a. What is Study Volt's degree of operating leverage? Note: Round your answer to 2 decimals. b. A 10% increase in sales will generate what percent increase in operating income? Note: Round your answer to 2 decimals. c. To deal with an industry-wide labor shortage, Study Volt has decided to increase automation on its production line. Doing so will decrease variable costs by 60% but will increase fixed costs by $2,000,000. Assuming constant sales, if Study Volt reconfigures its production line, what will be the change in Study Volt's operating income? Note: Round your answer to 2 decimals. Enter a decrease as a negative value. d. If Study Volt reconfigures its production line, what will be Study Volt's degree of operating leverage? Note: Round your answer to 2 decimals. e. If Study Volt reconfigures its production line, a 10% increase in sales will generate what percent increase in operating income? Note: Round your answer to 2 decimals. Answer % % Study Volt has the following financial information: 89,200 $ 8,920,000 $2,230,000 Unit Sales Revenue Variable Costs Contribution Margin $ 6,690,000 Fixed Costs $1,832,000 Operating Income $ 4,858,000 Question a. What is Study Volt's degree of operating leverage? Note: Round your answer to 2 decimals. b. A 10% increase in sales will generate what percent increase in operating income? Note: Round your answer to 2 decimals. c. To deal with an industry-wide labor shortage, Study Volt has decided to increase automation on its production line. Doing so will decrease variable costs by 60% but will increase fixed costs by $2,000,000. Assuming constant sales, if Study Volt reconfigures its production line, what will be the change in Study Volt's operating income? Note: Round your answer to 2 decimals. Enter a decrease as a negative value. d. If Study Volt reconfigures its production line, what will be Study Volt's degree of operating leverage? Note: Round your answer to 2 decimals. e. If Study Volt reconfigures its production line, a 10% increase in sales will generate what percent increase in operating income? Note: Round your answer to 2 decimals. Answer % %

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a The degree of operating leverage DOL can be calculated using the formula DOL Contribution Margin O... View the full answer