Answer:
1a.
Magic Realm, Inc.,
Contribution format income statement
Per Unit Amount
Sales 62 2,207,200
Variable expenses 42 (1,495,200)
Contribution margin 20 712,000
Fixed expenses (623,000)
Net operating profit 89,000
1b.
Degree of operating leverage: 4
2. The expected percentage increase in net operating income for next year: 184%
Explanation:
1a. Please refer to the answer part
1b. Degree of operating leverage = Contribution margin / net operating profit = 712,000/89,000 = 8.
2.
Expected percentage increase in net operating income for next year = Expected percentage increase in sales next year x operating leverage = 23% x 8 = 184%
here you go
Explanation:
Characteristics of Partnership
Unlimited liability: The members of a partnership have unlimited liability, i.e. they are collectively and individually liable for the firm's debts and obligations. ... Sharing of profit and loss: The main purpose of the partnership is to share profit in the agreed ratio.
C: Americans purchased many consumer goods on credit
Hopefully this helps.