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Author Question: Brandi's Bakery's income statement for last month is given below. What is Brandi's degree of ... (Read 96 times)

jrobl3

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Question 1

Brandi's Bakery's current degree of operating leverage is 15. Additional advertising is expected to increase her sales by 8%. What is the expected impact on operating income?
◦ 12%
◦ 53%
◦ 187%
◦ 120%

Question 2

Brandi's Bakery's income statement for last month is given below. What is Brandi's degree of operating leverage?

Sales$250,000
Variable expenses  75,000
Contribution margin175,000
Fixed expenses 125,000
Operating income$ 50,000

◦ 3.5
◦ 5.0
◦ 0.2
◦ 1.4


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Marked as best answer by jrobl3 on Feb 5, 2023

koung719

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jrobl3

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Reply 2 on: Feb 5, 2023
Gracias!


smrtceo

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Reply 3 on: Yesterday
:D TYSM

 

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