Question
Mahaxay Corporation has provided its contribution format income statement for April. Sales $201,6000 Variable expenses $129,600 Contribution Margin $72,000 Fixed expenses $63,600 Net operating income
Mahaxay Corporation has provided its contribution format income statement for April.
| Sales | $201,6000 |
| Variable expenses | $129,600 |
| Contribution Margin | $72,000 |
| Fixed expenses | $63,600 |
| Net operating income | $8,400 |
Required:
a. Compute the degree of operating leverage to two decimal places.
b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 9% increase in sales.
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Payroll Management 2020 Edition
Authors: Steven M. Bragg
1642210366, 978-1642210361
