Faber Company Income Statement For the Year Ended December 31, 2008 iSales Revenue 200,000 Less Variable Costs Contribution margin 200,000 Less: Fixed Costs Net Income 200,000 Part b: Operating Leverage: Part c: 10% increase in sales = ? Increase in net income

Transcribed Image Text:

Faber Company Income Statement For the Year Ended December 31, 2008 Sales Revenue Less Variable Costs Contribution margin Less: Fixed Costs Net Income Part b: Operating Leverage: Part C: 10% increase in sales = ? Increase in net income 200,000 200,000 200,000 Faber Company Income Statement For the Year Ended December 31, 2008 Sales Revenue Less Variable Costs Contribution margin Less: Fixed Costs Net Income Part b: Operating Leverage: Part C: 10% increase in sales = ? Increase in net income 200,000 200,000 200,000