Question: Mitzel Corporation has provided its contribution format income statement for May based on 1,000 units sold. Sales $96,000 Variable Expenses $61,200 Contribution Margin $34,800 Fixed

Mitzel Corporation has provided its contribution format income statement for May based on 1,000 units sold.

Sales $96,000

Variable Expenses $61,200 Contribution Margin $34,800 Fixed Expenses $26,100

Net operating income $8,700

(a) Compute the degree of operating leverage to two decimal places.

(b) If sales increase 10% what is the impact on net operating income?

(c) What is the break-even point in sales and units?

(d) What is the margin of safety based on $96,000 of sales?

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