Tubs to You Company distributes bath tubs. Line items from the company's most recent contribution format...

 

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Tubs to You Company distributes bath tubs. Line items from the company's most recent contribution format income statement follow: Sales $60,000 Variable expenses $36,000 Fixed expenses $8,000 Required 1. What is the company's degree of operating leverage? Use one decimal point in your answer. Blank 1 Required 2. Using the degree of operating leverage, estimate the impact of a 20% increase in unit sales on net operating income? The answer is a percentage. Do not use decimals in your answer. Blank 2% Required 3. Calculate the contribution margin in dollars assuming that there is a 20% increase in unit sales. Do not use decimal points or commas in your answer. $Blank 3 Required 4. Calculate the net operating income in dollars assuming that there is a 20% increase in unit sales. Do not use decimal points or commas in your answer. $Blank 4 Required 5. Calculate the contribution margin % (as a % of sale) assuming that there is a 20% increase in unit sales. Blank 5% Required 6. Calculate the % increase in the contribution margin assuming that there is a 20% increase in unit sales. Blank 6% Tubs to You Company distributes bath tubs. Line items from the company's most recent contribution format income statement follow: Sales $60,000 Variable expenses $36,000 Fixed expenses $8,000 Required 1. What is the company's degree of operating leverage? Use one decimal point in your answer. Blank 1 Required 2. Using the degree of operating leverage, estimate the impact of a 20% increase in unit sales on net operating income? The answer is a percentage. Do not use decimals in your answer. Blank 2% Required 3. Calculate the contribution margin in dollars assuming that there is a 20% increase in unit sales. Do not use decimal points or commas in your answer. $Blank 3 Required 4. Calculate the net operating income in dollars assuming that there is a 20% increase in unit sales. Do not use decimal points or commas in your answer. $Blank 4 Required 5. Calculate the contribution margin % (as a % of sale) assuming that there is a 20% increase in unit sales. Blank 5% Required 6. Calculate the % increase in the contribution margin assuming that there is a 20% increase in unit sales. Blank 6%