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Hurst Co. manufacturers and sells a single product. Price and cost data regarding this product are as follows: selling price $40 per unit variable manuf.
Hurst Co. manufacturers and sells a single product. Price and cost data regarding this product are as follows: selling price $40 per unit variable manuf. cost $20 per unit variable selling& admin $6 per unit fixed MOH 208,000 per yr fixed selling and admin $325,000 per yr d. Using the current sales level of 43,500, what is the operating leverage? Use the operating leverage to predict the increase in net income if sales increase by 20%. Prove the percentage increase predicted by preparing a contribution margin format income statement.
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