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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 * $ 72 per unit) Variable costs (60,000,000 units * $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 6.0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the amount of repair division income if unit sales increase by 8%. Income
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