ch 6 - 216000 240000 less fixed expenses 180000 210000 Net...

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3/24/2008 p6-20 1 12/20 0.6 2 180000/.6 300000 3 475000-(23750*8)-180000=105000 Increase of 55,000 from the previous year 4 operating leverage 240,000/60,000  = 4 4*.2 0.8 percent operating income should inrease by 80% .8*60,000+60000 108000 would be the new net operating income last year Proposed changes 5 sales 360000 432000 less variable expenses 144000 192000 contribution margin
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Unformatted text preview: 216000 240000 less fixed expenses 180000 210000 Net operating income 36000 30000 6 contribution margin 49500 0.55* (0.25*360000) net income 36000 advertising increase 13500 p6-24 I would not recommend that the company does as the sales manager says because the N.I. would be less than the previous year...
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