Managerial Accounting
Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Please give me answer general accounting

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 $6,952 and the total fixed expenses are $12,400. 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
percentage increase in net operating income of a 4% increase in sales? (Do not
round intermediate calculations. Round your answer to 2 decimal places.)
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 $ 26,000
Variable expenses 14,000
Contribution margin 12,000
Fixed expenses 7,800
Net operating income $ 4,200
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Transcribed Image Text: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 $6,952 and the total fixed expenses are $12,400. 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 percentage increase in net operating income of a 4% increase in sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 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 $ 26,000 Variable expenses 14,000 Contribution margin 12,000 Fixed expenses 7,800 Net operating income $ 4,200
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