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Kowkeela has recently opened The Cooker Shop, a store that specializes in one type of cooker. Kowkeela has just received a degree in business and
Kowkeela has recently opened The Cooker Shop, a store that specializes in one type of cooker. Kowkeela has just received a degree in business and she is anxious to apply the principles she has learned to her business. In time, she hopes to open a chain of cooker shops. As a first step, she has prepared the following analysis for her new store: $60 $17 Sales price per cooker .. Variable expenses per cooker. Fixed expenses per year: --- Building rental. $12700 -- Equipment depreciation ..., $5500 -- Selling $17000 --- Administrative. $17000 - - - (a) [2 marks] During the first year, the store sold only 3100 cookers. Using the space given after question (f), prepare a contribution approach income statement. (b) [1 mark] In relation to (a), Kowkeela's degree of operating leverage (in two decimal places) is
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