Langin Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
Required:
a. What is the margin of safety percentage?
b. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 15% increase in sales?

Question

Langin Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
  Required:
a. What is the margin of safety percentage?
b. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 15% increase in sales?

Quizplus · Accepted Answer

The Answer of Langin Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
  Required:
a. What is the margin of safety percentage?
b. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 15% increase in sales?

Langin Corporation Has Provided the Following Contribution Format Income Statement