Consider the same company one more time.

Revenues: 500

Variable Costs: 250

Fixed Costs: 100

Assuming that volume decreases 10%, what will revenues, variable costs, and fixed costs be in year 2? What will operating income be? What will the operating margin be in year 2?

Assume in the example above that variable costs were 150 and fixed costs were 200. What will revenues, variable costs, and fixed costs be in year 2? What will the operating margin be in year 2?