Pampalakas Company makes a high-energy protein drink. The selling price per liter is P10.80, and variable cost

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Pampalakas Company makes a high-energy protein drink. The selling price per liter is P10.80, and variable cost per liter is P6.48. Total fixed cost per year is P474,900. The company is currently selling 120,000 liters per year. a. What is the margin of safety in liters? b. What is the degree of operating leverage? c. If the company can increase sales in liters by 25 percent, what percentage increase will it experience in income? Prove your answer using the income statement approach

Posted Date: Jun 21, 2024 11:08 PM

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Pampalakas Company makes a high-energy protein drink. The selling price per liter is P10.80, and variable cost

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