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Author Question: Braque's Pantry is a chain of arts and crafts stores. Results for the most recent year are as ... (Read 67 times)

Gabby

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Braque's Pantry is a chain of arts and crafts stores. Results for the most recent year are as follows:

Sales revenue$9,000,000
Variable expenses$5,000,000
Fixed expenses  2,000,000
Total expenses  7,000,000
Operating income$2,000,000

Required:

a.What is Braque's Pantry's degree of operating leverage?
b.If sales increase by 7%, what will the new operating income be?
c.Managers are considering changing Braque's cost structure by offering employees
a commission on sales rather than a fixed salary. What effect would such a change
have on the firm's operating leverage?


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Marked as best answer by Gabby on Feb 5, 2023

miro2222

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Gabby

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Reply 2 on: Feb 5, 2023
Wow, this really help


smrtceo

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

 

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