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Cutlass Company's projected profit for the coming year is as follows: Total Per Unit Sales $200,000 $20 Total variable cost 120,000 12 Contribution margin $
Cutlass Company's projected profit for the coming year is as follows: Total Per Unit Sales $200,000 $20 Total variable cost 120,000 12 Contribution margin $ 80,000 $ 8 Total fixed cost 64,000 Operating income $ 16,000 Required: 1. Calculate the degree of operating leverage. Now suppose that Cutlass revises the forecast to show a 30% increase in sales over the original forecast. What is the percent change un operating income expected for the revised forecast? What is the total operating income expected by Cutlass after revising the sales forecast
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