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Techtronics Software, Inc. specializes in customized spreadsheet software. The results of the company's operations during the prior year (20xx) are given in the following table.
Techtronics Software, Inc. specializes in customized spreadsheet software. The results of the company's operations during the prior year (20xx) are given in the following table. All units produced during the year were sold. (Ignore income taxes.) Sales revenue Manufacturing costs: Fixed Variable Selling costs: Fixed Variable Administrative costs: Fixed Variable $4,300,000 565,000 1,130,000 63,000 165,000 133,000 43,000 Required 1-a. Prepare a traditional income statement for the company. 1-b. Prepare a contribution income statement for the company. 2. What is the firm's operating leverage for the sales volume generated during the prior year? 3. Suppose sales revenue increases by 20 percent. What will be the percentage increase in net income? Complete this question by entering your answers in the tabs below Req 1A Req 1B Req 2 Req 3
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