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TotalPer UnitSales (15,000 games)$300,000$20Variable Expenses90,0006Contribution Margin210,000$14Fixed Expenses182,000Net Operating Income28,000DOL= CM/Net Operating Income210,000/28,000=7.52. Management is confident that the company can sell 18,000 games next year (an increase of 3,000games, or 20%, over last year).Compute:a. The expected percentage increase in net operating income for next year.Sales of 18,000 games represent a 20% increase over the previous year’s sales. The DOL is 7.5 sonet income should increase 7.5 times as much or 7.5*20%=150% more.b. The expected total dollar net operating income for the next year.(No not prepare an incomeincome statement; use the degree of operating leverage to compute your answer.)Previous Year’s Net Operating Income28,000Expected Increase in Net Operating Income (150%*28,000)42,000Total Expected Net Operating Income70,000