1) compute the degree of operating leverage for last month

2) all else equal, if the sales revenue increased by 20%, compute the percentage of profit increase

3) one major competitor, Chiwen sells a similar product. Its contribution margin income statement for last month is as follows (picture)-

compute the degree of operating leverage of this competitor

4) which company is better positionned to whitsand a dramatic decrease in demand?

Plein ecran Imprimer Keebee, Inc. sells laptops for $1,000 per unit. Variable costs per unit are $400 and monthly fixed costs are $2,400,000. The contribution margin income statement for last month is as follows. Contribution Margin Income Statement Keebee, Inc. 6,000 units sold Per unit Total Percent of sales Sales price $1,000 $6,000,000 100% Variable cost 400 -2.400.000 $600 3,600,000 40% Contribution margin 60% Fixed costs 2.400.000 Profit $1 200 000 Compute the degree of operating leverage for last month. 2. All else equal, if the sales revenue increases by 20%, compute the percentage of profit increase. One major competitor, Chiwen, Inc. sells a similar product. Its contribution margin income statement for last month is as follows Contribution Margin Income Statement Chiwen, Inc. 10,000 units sold Per unit Total Percent of sales Sales price $800 $8.000,000 100% Variable cost 400 4.000.000 50% Contribution margin $400 4,000,000 Fixed costs 2.000.000 Profit $ 2.000.000 Compute the degree of operating leverage of this competitor. Which company is better positioned to withstand a dramatic decrease in demand"