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Assume that sales will increase by 20% in 2015. Calculate the percentage of before-tax income for this increase. Provide calculations to prove that your percentage
Assume that sales will increase by 20% in 2015. Calculate the percentage of before-tax income for this increase. Provide calculations to prove that your percentage increase is correct based on the operating leverage calculated in step 5.
Need help only on Times % Increase, and to see how it was reached
Units $ Per Unit # 72,000 72,000 $12.50 $6.00 Sales Variable Costs Fixed Costs Net Income Totals $900,000 $432,000 $295,525.00 $172,475.00 # H H # Operating Leverage # Times % Increase ???????????????? 2.26 Increase would be XX%H 82.56% H # # Prior Income! A $94,475.00 From Part 18 Prior Income $94,475.00 $78,000.00 82.562% Above $172,475.00# # # Increase Total! $78,000 # # # #### # H # # # H TStep by Step Solution
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