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5-5, Left Coast Publications, Inc. publishes a monthly magazine that keep thinking in California. The results of th dur All units produced during the year
5-5, Left Coast Publications, Inc. publishes a monthly magazine that keep thinking in California. The results of th dur All units produced during the year were sold. Ignore income tax subscribers abreast of political and economic pany's operations during the prior year are given in the following table. e com es.) Sales revenue Manufacturing costs: $1,000,000 Fixed Variable 250,000 500,000 Selling costs: Fixed Variable 25,000 50,000 . . Administrative costs: Fixed Variable 60,000 15,000 Instructions: 1. Prepare a traditional 2. What is the fir 3. Suppose sal income statement and a contribution . n's operating leverage factor for the sales volume generated during the prior year? income statement for the company es revenue increases by 12 percent. What will be the percentage increase in net income? Use the operating leverage factor to answer the question. 4. Which income statement would an operating manaeer us to ans er reguirement (3)? Why
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