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Peyton Place Corporation had the following income statement for 2016: Sales $27,500 Variable expenses 16,500 Contribution margin $11,000 Fixed expenses 4,400 Operating income $6,600 Required:
- Peyton Place Corporation had the following income statement for 2016:
| Sales | $27,500 |
| Variable expenses | 16,500 |
| Contribution margin | $11,000 |
| Fixed expenses | 4,400 |
| Operating income | $6,600 |
|
Required: |
|
- Calculate the operating leverage ratio.
- If sales increase by 20 percent, what will be the percentage change in income?
- If sales increase by $16,500, how much will income increase?
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Computer Accounting With Peachtree Complete 2011
Authors: Carol Yacht, Peachtree Software
15th Edition
007811098X, 978-0078110986
