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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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