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Sharon sells authentic Amish quilts on her website. Suppose Sharon expects to sell 2,000 quilts during the coming year. Her average sales price per quilt
Sharon sells authentic Amish quilts on her website. Suppose Sharon expects to sell 2,000 quilts during the coming year. Her average sales price per quilt is $400, and her average cost per quilt is $300. Her fixed expenses total $100,000. Compute Sharon's operating leverage factor at an expected sales level of 2,000 quilts. If sales volume increases 12%, by what percentage will her operating income change? Prove your answer by calculating operating income at a sales volume of 2,000 and at a sales volume of 2,240 . Compute her operating leverage factor. (Round your answer to two decimal places.) First, identify the formula, then compute the operating leverage factor. If sales volume increases 12%, by what percentage will her operating income change? (Round the percentage to the nearest tenth percent, X.X\%.) Operating income will increase by % Prove your answer. (Round the percentage to the nearest tenth percent, X.X\%.)
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