Mahaxay Corporation Has Provided Its Contribution Format Income Statement for April

question 84

Essay

Mahaxay Corporation has provided its contribution format income statement for April. 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 9% increase in sales.

---

Definitions:

Intermember Cooperation

The collaboration and mutual assistance among members within a group or team, essential for achieving collective goals.

Conformity Pressure

The influence exerted by a group that encourages individuals to change their attitudes, values, or behaviors to conform to group norms.

Group Cohesiveness

The extent to which members of a group feel connected and committed to one another, often leading to increased group performance.

Sociometry

A quantitative method for measuring social relationships, often used to identify social networks, leaders, group structures, or isolation.