Sales Revenue

Variable Costs

Contribution Margin

Fixed Costs

Net Income

a$.$ Calculate the new net income if the price per unit increases by $10\%$ with no

change in total variable costs or sales volume.

b$.$ Calculate Operating Leverage with the original information

c$.$ Calculate Contribution Margin Ratio

NOTE: Enter a formula, a cell reference, or a value into the yellow shaded input

cells.

a$.$

Current selling price

New selling price

Total sales

Less: variable costs

Contribution margin

Less: fixed costs

Net income

b$.$ Operating Leverage

C$.$ Contribution Margin Ratio