Question
Singh Co. reports a contribution margin of $699,000 and fixed costs of $466,000. (1) Compute the companys degree of operating leverage. (2) If sales increase
Singh Co. reports a contribution margin of $699,000 and fixed costs of $466,000. (1) Compute the companys degree of operating leverage. (2) If sales increase by 20%, what amount of income will Singh Co. expect?
| Degree of operating leverage | ||
| Percent change in income | % | |
| Amount of income reported | ||
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Financial Accounting
Authors: Jan R. Williams, Susan F. Haka, Mark S. Bettner, Joseph V. Carcello
12th Edition
0071116796, 978-0071116794
