Langin Corporation Has Provided the Following Contribution Format Income Statement

question 185

Essay

Langin Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
Required:
a. What is the margin of safety percentage?
b. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 15% increase in sales?

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Definitions:

Primary Sex Characteristics

The physical features that are directly involved in the reproductive process, including the ovaries, fallopian tubes, uterus, vagina in females, and the testes, seminal vesicles, and penis in males.

Males

Referring to the male sex or gender, biologically characterized by XY chromosomes, producing sperm for reproduction.

Primary Sex Characteristics

The physical features directly involved in the reproductive process, such as the ovaries in females and testes in males.

Secondary Sex Characteristics

Physical features that emerge during puberty which are not directly involved in reproduction but distinguish the two sexes, such as breast development and facial hair.