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Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,096,000 each month plus variable expenses of $4.00 per cartono calendars of
Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,096,000 each month plus variable expenses of $4.00 per cartono calendars of the variable expense, 73% is cost of goods sold, while the remaining 27% relates to variable operating expenses. The company sells each carton of calendars for $12.00 Read the requirements 14.37% Requirement 5. By what percentage will operating income change it July's sales volume is 10% higher? Prove your answer. (Round the percentage to two decimal places.) if volume increases 10%, then operating income will increase Prove your answer. (Round the percentage to two decimal places.) Original volume (cartons) 450,000 Add: Increase in volume 54,000 New volume (cartons) 504,000 Multiplied by: Unit contribution margin New total contribution margin Less: Fixed expenses New operating income vs, Operating income before change in volume Increase in operating income Porcentage change
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