At a sales level of $270,000, the magnitude of operating leverage for Donuts Unlimited is 1.5. If sales increase by 20%, profits (net income) will increase by: a. 20% b. 1.5% c. 15% d. 30%

Solemn Company has an operating leverage of 2.O. Sales for the current year are $100,000 with a contribution margin of $50,000. Sales are expected to be $150,000 next year. Operating income for the current year can be expected to increase by what amount over the previous year? O $25,000 O None of the above O $75,000 O $50,000

Sales of Blistre Autos are 400,000, variable cost is 230,000, fixed cost is 90,000 tax rate is 40%. Calculate the operating leverage of the company.A) 1.13 timesB) 3.54 times C) 1.35 timesD) 2.13 times

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Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000? a.$8,000 decrease b.$30,000 decrease c.$8,000 increase d.$30,000 increase

Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries? 0.42 and 2.2% 0.42and5% 2.4andl2% 2.Sandl3%

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