Answers
1 | |||
Contribution margin | 82200 | ||
Divide by Net operating income | 65200 | ||
Degree of operating leverage | 1.26 | ||
2 | |||
Increase in sales | 12% | ||
X Degree of operating leverage | 1.26 | ||
Net operating income increases by | 15.12% | ||
3 | |||
Amount | Percent of Sales | ||
Sales | 153440 | 100% | =137000*1.12 |
Variable expenses | 61376 | 40% | =153440*40% |
Contribution margin | 92064 | 60% | |
Fixed expenses | 17000 | ||
Net operating income | 75064 |
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