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8 [10 points]. Champan Company's 2020 net operating income (NOI) was $30,000. The company's contribution margin ratio was 30%, and total fixed expenses were
8 [10 points]. Champan Company's 2020 net operating income (NOI) was $30,000. The company's contribution margin ratio was 30%, and total fixed expenses were $7,500. 1) What was Champan's degree of operating leverage in 2020? 2) The company expects a decrease in sales of 12% in 2021 (compared to 2020). Total fixed expenses are expected to remain the same as last year. What is Chapman's estimated NOI in 2021?
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
