Question
Blink Inc. had the following income statement for the current year: Sales $50,000 Variable expenses 15,000 Contribution margin $35,000 Fixed expenses 15,000 Operating income $20,000
Blink Inc. had the following income statement for the current year:
| Sales | $50,000 |
| Variable expenses | 15,000 |
| Contribution margin | $35,000 |
| Fixed expenses | 15,000 |
| Operating income | $20,000 |
Required:
A. Calculate the degree of operating leverage. Round your answer to two decimal places.
B. If sales increase by 20%, what will be the percentage change in income? __________ % (increase or decrease)
C. If sales increase by $15,000, what will be the increase in income?
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Leading The Digital Workforce Internal Audit And IT Audit
Authors: Jeffrey W. Brown
1st Edition
1032323736, 978-1032323732
