Outback Products Reports the Following Information

question 165

Essay

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?

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Definitions:

SASSI-3

A self-report screening instrument designed to assess the likelihood of substance dependence and abuse in individuals.

Substance Dependence

A condition in which an individual persistently uses a substance (e.g., drugs, alcohol) despite significant problems related to its use, leading to a strong desire to take the drug, difficulties in controlling its use, and persisting in its use despite harmful consequences.

Diagnosis

The identification of the nature of an illness or other problem through the examination of symptoms.

Drawing Test

A psychological assessment method where individuals are asked to draw objects or scenes as a way to evaluate various aspects of personality, intelligence, or emotional state.