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The Chokolate Shop has an operating income of $11,000. a) Calculate the degree of operating leverage for each of the independent cases (assuming operating income
The Chokolate Shop has an operating income of $11,000.
a) Calculate the degree of operating leverage for each of the independent cases (assuming operating income is held constant): i. Contribution Margin is $57,000. ii. CM ratio is 56% and revenue is $142,000. iii. Selling price per unit is $44, variable costs per unit are $5 and it sold 4,900 units. Do not enter dollar signs or commas in the input boxes. Round contribution margin and operating income to the nearest whole number. Round the degree of operating leverage to 2 decimal places.
Contribution Margin Operating Income Degree of Operating Leverage i. $ $ ii. $ $ iii. A b) Which scenario has the largest degree of operating leverage? ScenarioStep by Step Solution
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