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Anna007 [38]
3 years ago
5

Carver Packing Company reports total contribution margin of $80,960 and pretax net income of $25,300 for the current month. In t

he next month, the company expects sales volume to increase by 5%. The degree of operating leverage and the expected percent change in income, respectively, are:
Business
1 answer:
Pavel [41]3 years ago
8 0

Answer:

3.2 & 16%

Explanation:

Degree of operating leverage = Contribution margin / Pretax net income

Degree of operating leverage = $80,960 / $25,300

Degree of operating leverage = 3.2

Degree of operating leverage 3.2 means if sales (or contribution margin) increases by 1%, income increases by 3.2 %.

Thus, Expected % change in income = Increase in sales * degree of operating leverage

Expected % change in income = 5% * 3.2

Expected % change in income = 0.5 * 3.2

Expected % change in income = 0.16

Expected % change in income = 16%

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Answer:

Please post the full question together next time.

If Modern Company received $3,650 from Connor Young Company on March 12 for the total amount of an account that had been written off on March 1, the entry to reinstate the account under the direct write-off method would include:______.

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3 years ago
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