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A company has calculated its indifference point to be 100.000 units for deciding on whether to automate its manufacturing process. What will happen to profits

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A company has calculated its indifference point to be 100.000 units for deciding on whether to automate its manufacturing process. What will happen to profits of the company does automate and sales volume is only 90,000 units? Multiple Choice O Protes remain the same Westerwheat, Inc. has provided the following cost information. WESTERWHEAT Contribution Margin Income Statement 150,eee units sold Total Per Unit Sales revenue $1,950, eee $13.ee Less: Variable costs 1.200, Contribution margin $ 75e, eee $ 5.0 Less: Fixed costs 350, eee Net operating income 4eeeee Percent 100% 8.88 389 Knowledge Check 01 What is Westerwheat's degree of operating leverage? 2143 4.875 1.875 3.000 Knowledge Check 02 A 20 percent Increase in sales revenue will increase net operating Income by 42.86% 097.50% 60.00% 37.50% Knowledge Check 03 Decreasing fixed costs by $100.000 will Decrease the degree of operating leverage by 0.375 Increase the degree of operating leverage by 0.857 Decrease the degree of operating leverage by 0.975 Decrease the degree of operating leverage by 0.600

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