Buckbeak Corporation had the following income statement for 2014:

Sales	$50,000
Less variable costs	- 28,000
Contribution margin	$22,000
Less fixed costs	- 16,000
Net income	$ 6,000

The Snape Corporation has the following data for 2014:

Selling price per unit	$10
Variable costs per unit	$6
Fixed costs	$20,000
Units sold	12,000

Snape's 2014 operating leverage is:

0.50

2.00

4.00

1.71

Buckbeak's 2014 operating leverage is:

0.333

2.000

3.667

2.333

UESTION 21

1. The following information is available for Bluewood Corporation for a sales volume of 500 stereo speakers for the past month:

   	Total	Per Unit
   Sales	$225,000	$450
   Less: variable expenses	80,000	160
   Contribution margin	$145,000	$290
   Less: fixed expenses	$ 35,000
   Net operating income	$110,000

   If sales increase by $51,750, net income will increase by what amount?

   		$ 6,000
   		$ 8,000
   		$20,000
   		$33,350