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See the table and calculate he degree of combined leverage . Sales (100,000 units) ps 1,000,000 Variable costs 300.000 Contribution margin 700,000 Fixed manufacturing costs
See the table and calculate he degree of combined leverage .
| Sales (100,000 units) | ps | 1,000,000 | ||
| Variable costs | 300.000 | |||
| Contribution margin | 700,000 | |||
| Fixed manufacturing costs | 200,000 | |||
| Operating income | 500,000 | |||
| Interest | 75,000 | |||
| Earnings before taxes | 425,000 | |||
| Taxes (30%) | 127,500 | |||
| Net Income | ps | 297,500 | ||
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To calculate the degree of combined leverage DCL you need to use the following formula DCL Change in ...
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
4th edition
1259578542, 978-1259578540
