Picasso pantry degree of operating leverage

Reference no: EM131084857

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

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

Required

What is Picasso"s Pantry"s degree of operating leverage?
If sales increase by 5%, what will the new operating income be?
Managers are considering changing Picasso"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?

Reference no: EM131084857

Questions Cloud

Carbon skeletons of organic molecules : Define a specific configuration of atoms commonly attached to the carbon skeletons of organic molecules and involved in chemical reactions.

Chemical reaction in which two molecules : What do we call a chemical reaction in which two molecules become covalently bonded to each other with the removal of a water molecule?

Distinguish between the above and your actual proposal : Method of analysis (The type of statistics you would use to analyze gathered data; not stats formula details, but which stats you would use). An explanation of your study's contribution/s to the field (the benefits to individuals, group's and soc..

Determine the impulse response y(n) if the input x(n) = d(n) : Determine the impulse response y(n) if the input x(n) = δ(n);

Picasso pantry degree of operating leverage : What is Picasso"s Pantry"s degree of operating leverage? If sales increase by 5%, what will the new operating income be?

Why patients often so dissatisfied with managed care plans : What kind of backup plan should hospitals and clinics have in place if their information systems go down? Why are patients often so dissatisfied with managed care plans? And can anything be done to improve their satisfaction?

How incorporating will affect the richards familys ability : Explain how incorporating will affect the Richards family's ability to transfer ownership to their children. Justify Jake's concerns with hiring professional management.

Provide an example of a logical consequence : You read about logical consequences. Provide an example of a logical consequence. Identify the issue and then write 12 sentences of a dialogue between you and your imagined client. Post the dialogue on the discussion board.

Determine the frequency response : Determine the filter type based the magnitude frequency response.

User Account

All Pages