(Solved): 13.What Is The Degree Of Operating Leverage?14.Using The Degree Of Operating Leverage, What Is The E ...
13.What is the degree of operating leverage?
14.Using the degree of operating leverage, what is the
estimated percent increase in net operating income of a 5% increase
in sales?
15.Assume that the amounts of the company’s total variable
expenses and total fixed expenses were reversed. In other words,
assume that the total variable expenses are $8,400 and the total
fixed expenses are $21,000. Under this scenario and assuming that
total sales remain the same, what is the degree of operating
leverage?
16. Assume that the amounts of the company's total variable
expenses and total fixed expenses were reversed. In other words,
assume that the total variable expenses are $8,400 and the total
fixed expenses are $21,000. Given this scenario, and assuming that
total sales remain the same, calculate the degree of operating
leverage. Using the calculated degree of operating leverage, what
is the estimated percent increase in net operating income of 5%
increase in sales?
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 35,000 21,000 14,000 8,400 $ 5,600
