In the Most Recent Month,Sardella Corporation's Total Contribution Margin Was

question 257

Essay

In the most recent month,Sardella Corporation's total contribution margin was $46,200 and its net operating income $13,200.
Required:
a.Compute the degree of operating leverage to two decimal places.
b.Using the degree of operating leverage,estimate the percentage change in net operating income that should result from a 10% increase in sales.

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Definitions:

Profiling An Option

This term is not widely recognized in standard financial terminology. NO.

Call Option

An option contract that allows the holder to purchase a specific asset at a predetermined price before the contract expires.

Swap

A financial agreement between two parties to exchange sequences of cash flows for a set period of time according to specified terms.

Floating Rate

An interest rate that is allowed to move up and down with the rest of the market or along with an index.