Given the following information, calculate the margin of safety if the sales double. Sales . $100,000...

  

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Given the following information, calculate the margin of safety if the sales double. Sales . $100,000 Less: variable expenses.. 20,000 Contribution margin . $ 80,000 Less: fixed expenses.. 80,000 Operating income. $0 S7-14 Compute and use operating leverage factor (Learning Objective 5) Refer to the original data from S7-13, where 1,000 units were sold at the price of $100. If the company sells 1,200 units, what is the operating leverage factor? If the sales volume increases by 10%, by what percentage will the operating income change? Given the following information, calculate the margin of safety if the sales double. Sales . $100,000 Less: variable expenses.. 20,000 Contribution margin . $ 80,000 Less: fixed expenses.. 80,000 Operating income. $0 S7-14 Compute and use operating leverage factor (Learning Objective 5) Refer to the original data from S7-13, where 1,000 units were sold at the price of $100. If the company sells 1,200 units, what is the operating leverage factor? If the sales volume increases by 10%, by what percentage will the operating income change?

Answer rating: 100% (QA)

Operating leverage factor Contribution MarginOperating income Sales 1200100 120000 Less Variable e... View the full answer