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Ehrlich Company produced and sold 45,000 units of a single product last year, with the following results: Sales Revenue $1,350,000 Manufacturing costs: Variable 585,000 Fixed
Ehrlich Company produced and sold 45,000 units of a single product last year, with the following results: Sales Revenue $1,350,000 Manufacturing costs: Variable 585,000 Fixed 270,000 Selling costs: Variable 40,500 Fixed 54,000 Administrative costs: Variable 184,500 Fixed 108,000 A. Prepare a contribution format income statement B. Calculate the operating leverage C. Based on your answer in C, calculate the estimated % increase in net operating income if there is a 15% increase in sales
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