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The following are the results of Larry Inc., a company that sells bobblehead dolls: Expected Sales Units 5.000 Sales $350,000 Total variable costs $245,000 Contribution
The following are the results of Larry Inc., a company that sells bobblehead dolls: Expected Sales Units 5.000 Sales $350,000 Total variable costs $245,000 Contribution margin $105,000 Total fixed costs $30,000 $75,000 Operating income Using the above information answer the following questions. What is the contribution margin ratio? HINT: remember the entry rules for percentages. What is the break-even in sales dollars? What is the margin of safety in sales dollars? What is the degree of operating leverage? Entry rules: enter your answer rounded to 2 decimal places. If sales increase by 15%, by what percentage will the operating income increase? HINT: remember the entry rules for percentages
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