Question

Suppose Sally sells 1,500 posters. Use the original data from S7- 13 to compute her operating leverage factor. If sales volume increases 20%, by what percentage will her operating income change? Prove your answer.

Data from S7- 13
Sally has an online poster business. Suppose Sally expects to sell 1,500 posters. Her ­average sales price per poster is $ 45 and her average cost per poster is $ 25. Her fixed expenses total $ 15,000.



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  • CreatedAugust 27, 2014
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