Question
Hogue Sports Hut provides individual instruction and coaching to children participating in the citys baseball, softball, basketball, and soccer youth leagues. Last years results were
Hogue Sports Hut provides individual instruction and coaching to children participating in the citys baseball, softball, basketball, and soccer youth leagues. Last years results were as follows:
Sales revenue | $921,450 | |
Variable expenses | 647,750 | |
Contribution margin | 273,700 | |
Fixed expenses | 154,700 | |
Operating income | $119,000 |
B) If Anna Hogue, the companys president, is successful in increasing sales revenue by 5%, by what percent will the companys operating income increase? (Round answer to 2 decimal place, e.g. 13.25%.)
C) After achieving the sales increase in part (b), what will be the companys new operating income? (Round answer to 0 decimal places, e.g. 25,000.)
D) After achieving the sales increase in part (b), what will be the companys new operating leverage? (Round answer to 2 decimal places, e.g. 0.38.)
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