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Study Volt has the following financial information: Unit Sales 8 6 , 0 0 0 Revenue $ 8 , 6 0 0 , 0 0
Study Volt has the following financial information:
Unit Sales
Revenue $
Variable Costs $
Contribution Margin $
Fixed Costs $
Operating Income $
a What is Study Volts degree of operating leverage? Note: Round your answer to decimals.
b A increase in sales will generate what percent increase in operating income? Note: Round your answer to decimals.
c To deal with an industrywide labor shortage, Study Volt has decided to increase automation on its production line. Doing so will decrease variable costs by but will increase fixed costs by $ Assuming constant sales, if Study Volt reconfigures its production line, what will be the change in Study Volts operating income? Note: Round your answer to decimals. Enter a decrease as a negative value.
d If Study Volt reconfigures its production line, what will be Study Volts degree of operating leverage? Note: Round your answer to decimals.
e If Study Volt reconfigures its production line, a increase in sales will generate what percent increase in operating income? Note: Round your answer to decimals.
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