Statement of Comprehensive Income for Brooklyn Company for the current year is Sales Variable cost Contribution margin Fixed cost P 750,000 600,000 150,000 100,000 P 50,000 Operating income Required 1.Compute the break-even point 2.Compute the margin of safety 3.Compute the margin of safety ratio 4.Compute the degree of operating leverage 5.Suppose the company experiences a 30% increase in revenues, compute for the percentage change in profits
Statement of Comprehensive Income for Brooklyn Company for the current year is Sales Variable cost Contribution margin Fixed cost P 750,000 600,000 150,000 100,000 P 50,000 Operating income Required 1.Compute the break-even point 2.Compute the margin of safety 3.Compute the margin of safety ratio 4.Compute the degree of operating leverage 5.Suppose the company experiences a 30% increase in revenues, compute for the percentage change in profits
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 16E
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Subject: cost accounting
Required# 4 and 5
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