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Operating leverage; margin of safety; income statement a. What is the margin of safety in packages? Note: Round number of units to the next highest
Operating leverage; margin of safety; income statement a. What is the margin of safety in packages? Note: Round number of units to the next highest whole units (for example, round 4.1 units to 5 units). packages b. What is the degree of operating leverage? Note: Round your answer to the nearest two decimal places (for example, round 4.855 to 4.86 ). c. If the company can increase sales in packages by 30 percent, what percentage increase will it experience in income? Note: Round your answer to the nearest whole percentage point. 15 Prove your answer using the income statement approach. Note: Do not use negative signs with your answers. Dollar change in net income \$ Percentage change in net income d. If the company increases advertising by $41,200, sales in packages will increase by 15 percent. What will be the new break-even point in sales dollars? What is the new degree of operating leverage? Note: Round your answer to the nearest two decimal places (for example, round 4.855 to 4.86 )
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