Contribution Margin, Degree of Operating Leverage, $\backslash$& Sensitivity Analysis!

Grading rubric for Tech $\backslash$# $4$

$-4$ points for each yellow, purple, or green cell that lacks a round function or is rounded to the wrong number of decimal places $(8$ points total$)$

$-6$ points for each hardcoded cell $($seriously$,$ we're past this now!$)$

$-6$ points for each blank cell or cell that contains the wrong numerical value.

$-4$ points for a submission with the wrong file name.

$-2$ points for cell D$28,$ D$29,$ H$28,$ H$29$ that does not have an absolute reference $($SES$25)$

$-20$ points for a submission from a previous semester.

Here's what to do

Sales increase:

C$.)$ Degree of operating leverage can be used in sensitivity analysis.

From the CM income statements $\backslash$& your calculation of the degree of operating leverage, calculate the $\backslash (\backslash \%\backslash )$ change in net income.

Calculating $\backslash \%$ change in net income using degree of operating leverage.

$\backslash (=\backslash )$ Degree of Operating Leverage $\backslash (\backslash$mathrm$\{$X$\}\backslash \%\backslash )$ Change in Sales Revenue

Use this value for $\backslash (\backslash \%\backslash )$ change in sales revenue $\backslash (=15\backslash \%\backslash )$