Fielder Productions reports the following information:
Total Contribution Margin…………………..$32,000 Total Fixed Costs……………………………. $28,000
Required:
(a) Calculate Fielder's degree of operating leverage (DOL).
(b) Fielder Productions forecasts a 6% increase in sales. What is the expected effect in percent on pretax income?

Question

Quizplus · Accepted Answer

The Answer of Fielder Productions reports the following information:
Total Contribution Margin…………………..$32,000 Total Fixed Costs……………………………. $28,000
Required:
(a) Calculate Fielder's degree of operating leverage (DOL).
(b) Fielder Productions forecasts a 6% increase in sales. What is the expected effect in percent on pretax income?

Fielder Productions Reports the Following Information