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Sarah sells authentic Amish quilts on her website Suppose Sarah expects to sell 1.800 quilts during the coming year. Her average sales price per quilt
Sarah sells authentic Amish quilts on her website Suppose Sarah expects to sell 1.800 quilts during the coming year. Her average sales price per quilt is $350, and her average cost per quit is $150. Her Exed expenses al $135,000 Computer's operating leverage factor at an expected sales level of 1,000 quilts. If sales volume increases 15%, by what percentage will her operating income change? Prove your answer by calculating operating income at a les volume of 1,800 and at a sales volume of 2.070, Compute her operating leverage factor (Round your answer to two decimal places.) First, idently the formula. then compute the operating leverage factor Contribution margin 360,000 Operating income 225,000 Operating leverage factor 1.00 CHO If sales volume increases 15%, by what percentage will her operating income change? (Round the percentage to the nearest tenth percent. XX%) Operating income will increase by 24.0% Prove your answer. (Round the percentage to the nearest tenth percent, XX%) Onginal volume (qu) Add. Increase in volume New volume (qu) Multiplied by Unit contribution margin New total contribution merin Les Find expenses New operating income Less Operating income before change in volume Increase in operating income Percentage change
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