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Degree of Operating Leverage, Percent Change in Profit Ringsmith Company is considering two different processes to make its product-process 1 and process 2. Process 1

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Degree of Operating Leverage, Percent Change in Profit Ringsmith Company is considering two different processes to make its product-process 1 and process 2. Process 1 requires F materials costs are higher, but fixed factory overhead is considerably lower. Relevant data for a sales level of 25,000 units folly 1. Compute the degree of operating leverage for each process. Round your answers to one decimal place. Use the rounde 2. Suppose that sales are 20 percent higher than budgeted. By what percentage will operating income increase for each process What will be the increase in operating income for each system? Round your answers to the nearest dollar. Process 1 \$ x Process 2 What will be the total operating income for each process? Round your intermediate calculations and final answers to the n. Process 1 Process 2 3. What if unit sales are 10 percent lower than budgeted? By what percentage will operating income decrease for each process? Process 1 Process 2 What will be the total operating income for each process? Round your intermediate calculations and final answers to the neu Process 1 Process 2 ss to make its product-process 1 and process 2. Process 1 requires Ringsmith to manufacture subcomponents of the product in-house. As a result, ma considerably lower. Relevant data for a sales level of 25,000 units follow: rocess. Round your answers to one decimal place. Use the rounded answers in subsequent calculations. eted. By what percentage will operating income increase for each process? system? Round your answers to the nearest dollar. 5s? Round your intermediate calculations and final answers to the nearest dollar. Use the rounded answers in subsequent calculations. bted? By what percentage will operating income decrease for each process? Round your intermediate calculations and final answers to the nearest dollar. Use the rounded answers in subsequent calculations. in subsequent calculations. irs in subsequent caiculations

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