Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Brown sells tiling grout and reports the following data: Kilograms produced and sold 625,000 kg Sales revenue $5,625,000 Variable manufacturing expense 1,875,000 Fixed manufacturing expense
Brown sells tiling grout and reports the following data:
Kilograms produced and sold | 625,000 kg |
Sales revenue | |
$5,625,000 | |
Variable manufacturing expense | |
1,875,000 | |
Fixed manufacturing expense | |
1,000,500 | |
Variable selling and administrative expense | |
625,000 | |
Fixed selling and administrative expense | |
562,000 | |
Net operating income | |
$ 1,562,500 |
Calculate the companys operating leverage if sales decrease by 10%.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started