Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer each part of the question and explain how you got every number. Will leave a thumbs up! Sandy sells authentic Amish quits on

Please answer each part of the question and explain how you got every number. Will leave a thumbs up!
image text in transcribed
image text in transcribed
Sandy sells authentic Amish quits on her website. Suppose Sandy expects to sell 1,000 quilts during the coming year. Her average sales price per quilt is $300, and her average cost per quit is $150. Her fixed expenses total $75,000. Compule Sandy's operating leverage factor at an expected sales level of 1,000 quilts. If sales volume increases 8%, by what percentage will her cperating income change? Prove your answer by calculating operating income at a sales volume of 1,000 and at a sales volume of 1,080 . Compule her cperating leverage factor. (Round your answer to two decimal places.) Finst, identify the formula, then compule the operating leverage factor. If sales volume increases 8%, by what percentage will her cperating income change? (Round the percentage to the nearest tenth percent, X.x% ) Opecating income wall increase by % Prove your answer. (Round the percentage to the nearest tenth percent, X.X\%.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Determination A Conceptual Approach

Authors: Joel S. Demski

1st Edition

0813803608, 978-0813803609

More Books

Students also viewed these Accounting questions

Question

4. What are the three stages of Lean application?

Answered: 1 week ago

Question

what was the need for the united state tennis association project

Answered: 1 week ago