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Question 4 140,000 560,000 360,000 $200,000 Not yet answered Marked out of 12.00 p Flag question The following Contribution Margin format income statements are available
Question 4 140,000 560,000 360,000 $200,000 Not yet answered Marked out of 12.00 p Flag question The following Contribution Margin format income statements are available for Mera Company and Yara Company. MERA Company YARA Company $700,000 $700,000 Sales revenue 350,000 Variable costs 350,000 Contribution margin 150,000 $200,000 Fixed costs Net income If selling price per unit in each company is $20 Instructions: (a) Compute the degree of operating leverage for each company. (b) Compute the breakeven point in units and in dollar value (5) for each company Assume that sales revenue increases by 20%, how much would be the change in the net income for each company. (c) lenovo ODD
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