Question
Operating leverage; margin of safety; income statement Titan Foods makes a high-energy frozen meal. The selling price per package is $7.20, and variable cost
Operating leverage; margin of safety; income statement Titan Foods makes a high-energy frozen meal. The selling price per package is $7.20, and variable cost of production is $4.32. Total fixed cost per year is $126,640. The company is currently selling 50,000 packages per year. 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). 0 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). 0 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. 0 96 Prove your answer using the income statement approach. Note: Do not use negative signs with your answers. 83 Mostly dear ADA 12:26 AM 3/11/2022
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