A Corporation has provided its contribution format income statement for August Sales $863,300 Variable expenses 424,200 Contribution
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Question:
A Corporation has provided its contribution format income statement for August
Sales $863,300
Variable expenses 424,200
Contribution margin 436,100
Fixed expenses 352,400
net operating income $83,700
a. Compute the degree of operating leverage to two decimal places.
b. Using the degree of operating leverage, estimate the percentage in net operating income that should result from a 14% increase in sales.
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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