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Compute her operating leverage factor

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Reference no: EM13551124

Suppose Sandy sales 1,000 posters. Her average sale price is $32 and her average cost for posters is $12. her fixed expenses total $12,000
Compute her operating leverage factor. If sales volume increase 4%. What chart percentage will her operating income change? Prove your answer. (Your answer should be two decimal places).
Formula: Contribution Margin / Operating Income.

If sales volume increase 4%, by what percentage will her operating income change? (Round the percentage to nearest percent).

Reference no: EM13551124

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