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Outback Products Reports the Following Information  Total contribution margirl $32,000 Total fixed costs $28,000\begin{array} { l l } \text { Total contribution margirl } & \$ 32,000 \\\text { Total fixed costs } & \$ 28,000\end{array}

question 138

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Outback Products reports the following information:
 Total contribution margirl $32,000 Total fixed costs $28,000\begin{array} { l l } \text { Total contribution margirl } & \$ 32,000 \\\text { Total fixed costs } & \$ 28,000\end{array} 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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