Essay
Patton Company's selling price is $100, variable costs are 60% of sales, and fixed costs total $60,000.
Required:
a.At a $400,000 sales level, what is Patton's degree of operating leverage?
b.If sales volume increases by 10%, what will be the amount of increase in operating income?
Correct Answer:
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a.$400,000 × (1 ̶ 0.60) = $160...View Answer
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Correct Answer:
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