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2011 Forecasted Operations Sales with 30% In...

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Question

2011 Forecasted Operations Sales with 30% Increase Unit Change Sales in units(millions) 100.0 150.0 60.0 Sales revenue $3,000 $3,900 $900 Variable cost of goods sold (1000) (1300) (300) Gross profit $2,000 $2,600 $600 Fixed operating costs (180) (180) 0 Net operating income $1,820 $2,420 $600 By how much will net operating income increase for the given increase in sales & associated expenses? Round to nearest whole precent. 36% 40% 33% Calculate the degree of operating leverage for the projected change of 30% from the original 2011 forecast. 0.99 1.21 1.32 1.10

 

Paper#12598 | Written in 18-Jul-2015

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