Fielder Productions Reports the Following Information

question 33

Essay

Fielder Productions reports the following information:
Total Contribution Margin…………………..$32,000 Total Fixed Costs……………………………. $28,000
Required:
(a) Calculate Fielder's degree of operating leverage (DOL).
(b) Fielder Productions forecasts a 6% increase in sales. What is the expected effect in percent on pretax income?

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