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During the most recent fiscal period, Cherokee Company had sales of $80,000. Variable costs are 20% of sales and fixed costs amounted to $48,000 for
During the most recent fiscal period, Cherokee Company had sales of $80,000. Variable costs are 20% of sales and fixed costs amounted to $48,000 for the year.
Calculate the following in Excel:
a. Contribution margin ratio
b. Operating leverage
c. Break-even sales in dollars
d. Using operating leverage, calculate the operating profit if sales increase by 20% next year.
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