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

question 40

Essay

In the most recent month, Shoemaker Corporation's total contribution margin was $29,600 and its net operating income $3,000.
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:

Female Orgasm

A peak of sexual pleasure in women, accompanied by a series of involuntary contractions of the pelvic muscles.

Male

A biological sex that in many species, including humans, is typically characterized by the production of small, mobile gametes called sperm.

Lubricating Fluid

A substance applied between two surfaces to reduce friction and wear, commonly used in machinery and biological joints.

Arousal

A physiological and psychological state of being awoken or alert, often associated with increased activity in the sympathetic nervous system.