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Apple offers extended service contracts that provide repair coverage for its products. Assume its repair division reports the following annual results. Sales (60,000,000 units
Apple offers extended service contracts that provide repair coverage for its products. Assume its repair division reports the following annual results. Sales (60,000,000 units x $72 per unit) Variable costs (60,000,000 units x $32 per unit) Contribution margin Fixed costs Income $ 4,320,000,000 1,920,000,000 2,400,000,000 2,000,000,000 $ 400,000,000 Required: 1. Compute the repair division's degree of operating leverage. 2. Compute the amount of repair division income if unit sales increase by 8%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the repair division's degree of operating leverage. (Round your answer to 1 decimal place.) Degree of operating leverage < Required 1 Required 2 >
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