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Question
Outback Products reports the following information:
| Total contribution margin | $32,000 |
| Total fixed costs | $28,000 |
Required:
a. Calculate Outback Products degree of operating leverage (DOL).
b. Outback Products forecasts a 6% increase in sales. What is the expected effect in percent on pretax income?
Answer
This answer is hidden. It contains 186 characters.
Related questions
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Q:
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Q:
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E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.