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.

Question

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The Answer of 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.

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