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Contribution Income Statement and Operating Leverage strawberries in the world! The selling price is $90 per crate, variable costs are $70 per crate, and fixed
Contribution Income Statement and Operating Leverage strawberries in the world!" The selling price is $90 per crate, variable costs are $70 per crate, and fixed costs are $278,000 per year. In the year 2008, Florida Berry Basket sold 43,000 crates. (a) Prepare a contribution income statement for the year ended December 31, 2008. HINT: Use a negative sign with both "costs" answers. (b) Determine the company's 2008 operating leverage. (Round your answer to two decimal places.) (c) Calculate the percentage change in profits if sales decrease by 10 percent. (Round your answer to one decimal place.) % decrease and explain any change. (Round your answer to two decimal places.)
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