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What will be its new operating income as a result

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Reference no: EM133079465

Question - One of the products produced by ZOMG Co. is an exercise tracking app for smart phones that turns your running progress into a zombie survival narrative. The selling price per app is $4.50, and variable cost of production is $2.50. Total fixed costs per year are $316,600. The company is currently selling 200,000 apps per year. What is ZOMG's degree of operating leverage, and, if the company can increase sales in units and dollars by 30%, what will be its new operating income as a result?

Reference no: EM133079465

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