Company A has current sales of $ 1 0 , 3 3 7 , 3 7 6

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Question:

Company A has current sales of $

10, 337, 376

and a

48 %

contribution margin. Its fixed costs are $

2, 242, 728 .

Company B is a service firm with a current service revenue of $

6, 907, 643

and a

18 %

contribution margin. Company Bs fixed costs are $

620, 046 .

Using the degree of operating leverage for Company A

,

what will be the increase to net income if there was a

21 %

increase in sales? Round to the hundredth, two decimals.

Related Book For answer-question

Basic Statistics for the Behavioral Sciences

ISBN: 978-0840031433

6th edition

Authors: Gary W. Heiman

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Posted Date: Apr 16, 2024 04:40 AM

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Company A has current sales of $ 1 0 , 3 3 7 , 3 7 6

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Basic Statistics for the Behavioral Sciences

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