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5) For a company with an operating leverage factor of 3, an increase in sales volume by 10% will result in an increase in operating
5) For a company with an operating leverage factor of 3, an increase in sales volume by 10% will result in an increase in operating income by . (Assume that other things do not change.) 6) A company's nancial budgets consist of the capital expenditure budget, the cash ow budgets, and 7) Electric Jet Skis operates a jet ski rental business. Assume the jet skis rent for $55 per 6 hours. The variable costs are $33 per 6 hours rental, and its xed costs are $80,000 each month. The contribution margin ratio is
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