Braque's Pantry is a chain of arts and crafts stores.Results for the most recent year are as follows: Required:
a.What is Braque's Pantry's degree of operating leverage?
b.If sales increase by 7%, what will the new operating income be?
c.Managers are considering changing Braque's cost structure by offering employees a commission on sales rather than a fixed salary.What effect would such a change have on the firm's operating leverage?

Question

Braque's Pantry is a chain of arts and crafts stores.Results for the most recent year are as follows:  Required: 
a.What is Braque's Pantry's degree of operating leverage?
b.If sales increase by 7%, what will the new operating income be?
c.Managers are considering changing Braque's cost structure by offering employees a commission on sales rather than a fixed salary.What effect would such a change have on the firm's operating leverage?

Quizplus · Accepted Answer

The Answer of Braque's Pantry is a chain of arts and crafts stores.Results for the most recent year are as follows:  Required: 
a.What is Braque's Pantry's degree of operating leverage?
b.If sales increase by 7%, what will the new operating income be?
c.Managers are considering changing Braque's cost structure by offering employees a commission on sales rather than a fixed salary.What effect would such a change have on the firm's operating leverage?

Braque's Pantry Is a Chain of Arts and Crafts Stores