Following is the income statement for Yang Renovations for the month of July 2021: (Round your...

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Following is the income statement for Yang Renovations for the month of July 2021: (Round your answers to two decimal places when needed and use rounded answers for all future calculations). Yang Renovations Contribution Margin Income Statement For Period Ending July 31, 2021 Sales Revenue Variable Costs 41,500 Contribution Margin 49,300 Fixed Costs Operating Income 90,800 1. Calculate the degree of operating leverage. Contribution Margin / Operating Income = Degree of operating leverage 1 12,300 37,000 Operating Income 2. Use the degree of operating leverage calculated above to estimate the change in operating income if total sales increase by 29%. Percent change. in Sales Revenue (%) X X = X Degree of operating leverage Percent change in operating income (%) A = = = Percent change in operating income. (%) Dollar change in operating income Following is the income statement for Yang Renovations for the month of July 2021: (Round your answers to two decimal places when needed and use rounded answers for all future calculations). Yang Renovations Contribution Margin Income Statement For Period Ending July 31, 2021 Sales Revenue Variable Costs 41,500 Contribution Margin 49,300 Fixed Costs Operating Income 90,800 1. Calculate the degree of operating leverage. Contribution Margin / Operating Income = Degree of operating leverage 1 12,300 37,000 Operating Income 2. Use the degree of operating leverage calculated above to estimate the change in operating income if total sales increase by 29%. Percent change. in Sales Revenue (%) X X = X Degree of operating leverage Percent change in operating income (%) A = = = Percent change in operating income. (%) Dollar change in operating income

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SOLUTION To calculate the degree of operating leverage we use the formula Degree of operating leverage Contribution Margin Operating Income From the g... View the full answer