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. Using the Degree of Operating Leverage only, fill in the information about sales volume increases. Show exactly where you got your percentage number from.
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Using the Degree of Operating Leverage only, fill in the information about sales volume increases. Show exactly where you got your percentage number from. |
Silver (500 GB) | |
Projected Volume Increase | 10% |
New Net Operating Income | |
Gold (1 TB) | |
Projected Volume Increase | -10% |
New Net Operating Income | |
Platinum (2 TB) | |
Projected Volume Increase | 30% |
New Net Operating Income |
Prove these numbers true by applying the change in volume to a new Contribution Format Income Statement. Show how you got your answer | |||||
Silver (500 GB) | |||||
Sales | |||||
Variable Cost | |||||
Contribution Margin | |||||
Fixed Cost | |||||
Net Operating Income | |||||
Gold (1 TB) | |||||
Sales | |||||
Variable Cost | |||||
Contribution Margin | |||||
Fixed Cost | |||||
Net Operating Income | |||||
Platinum (2 TB) | |||||
Sales | |||||
Variable Cost | |||||
Contribution Margin | |||||
Fixed Cost | |||||
Net Operating Income |
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