Patton Company's selling price is $100, variable costs are 60% of sales, and fixed costs total...

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Patton Company's selling price is $100, variable costs are 60% of sales, and fixed costs total $60,000. (a) At a $400,000 sales level, what is Patton's degree of operating leverage? Patton's degree of operating leverage v (b) If sales volume increases by 10%, what will be the amount of increase in operating income? 6400 Increase in operating income Patton Company's selling price is $100, variable costs are 60% of sales, and fixed costs total $60,000. (a) At a $400,000 sales level, what is Patton's degree of operating leverage? Patton's degree of operating leverage v (b) If sales volume increases by 10%, what will be the amount of increase in operating income? 6400 Increase in operating income

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a The employment of assets or source of funds for which the firm has to pay fixed costs or fixed ret... View the full answer