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

question 21

Essay

In the most recent month, Flamino Corporation's total contribution margin was $83,700 and its net operating income $21,200.
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 17% increase in sales.

---

Definitions:

Synchronous

Occurring at the same time or operating in unison; often used in reference to processes that happen simultaneously.

Telecommuting

A work arrangement in which employees do not commute to a central place of work but work remotely, usually from home, utilizing the internet and communication technology.

Promotion Time

A period during which marketing efforts are intensified to increase awareness or sales of a product or service, often featuring special offers or discounts.

Teleconferencing

A method of using electronic media to conduct meetings or discussions among people in different locations, via audio, video, or web-based platforms.