Meme Chapter 06. Cost-Volume-Profit Analysis Handout 6-3 (L05) Keebee, Inc. sells laptops for $1.000 per unit Variable costs est un are $400 and monthly fried costs are $2.400,000. The contribution margin income statement for last month is as follows Contribution Margin Income Statement Keebee, Inc. 6,000 units sold Per unit Total $1,000 $6,000,000 400 2.400.000 3.600,000 2.400.000 S1.200.000 Percent of sales 1005 Sales price Variable cost Contribution margin Fixed costs Profit 1. Compute the degree of operating leverage for last month 2. All else equal, if the sales revenue increases by 20%, compute the percentage of profit increase in income statement 3. One major competitor, Chiwen, Inc. sells a similar product is contribution for last month is as follows. Percent of sales Contribution Margie Income Statement Chiwrn, Inc. 10.000 units sold Per unit Total | | | | | 4,000,000 S400 4,000,000 2.000.000 500 Sales price Variable cost Contribution margin Fixed costs Profit Compute the degree of operating leverage of this competitor 4. Which company is better positioned to withstand a dramatic decrease in demand? OOO