In the most recent month, Shoemaker Corporation's total contribution margin was $29,600 and its net operating income $3,000.
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 10% increase in sales.

Question

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The Answer of In the most recent month, Shoemaker Corporation's total contribution margin was $29,600 and its net operating income $3,000.
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 10% increase in sales.

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