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

question 138

Essay

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

---

Definitions:

Show As Button

An option on various software interfaces that displays toolbar items as buttons for easy access and identification.

Appointment Status

An indication of the current condition or progression of a scheduled meeting or event, such as confirmed, pending, or cancelled.

Calendar Item

An entry in a digital calendar or scheduling application, typically representing an appointment, meeting, or event, including its date, time, and other relevant details.

Print View

A software mode that displays a document as it will appear on the printed page, allowing users to adjust formatting before printing.