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Author Question: One way to compute the expected change in operating income due to a change in sales volume at a ... (Read 70 times)

shanell

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Question 1

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

Sales$350,000
Variable expenses 175,000
Contribution margin175,000
Fixed expenses 150,000
Operating income$ 25,000

◦ 2.0
◦ 1.0
◦ 3.5
◦ 7.0

Question 2

One way to compute the expected change in operating income due to a change in sales volume at a given level of sales is to
◦ perform horizontal analysis.
◦ compute the degree of operating leverage.
◦ perform high-low analysis.
◦ perform scattergraph analysis.


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Marked as best answer by shanell on Feb 5, 2023

jacquelyngibson

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shanell

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review


ecabral0

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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