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sales Sales 100% Variable costs 33,000 Company A Amount P110,000 30% 66.000 30,000 % of sales P 14,000 100% Contibution Margin P 44,000 40% 70% Fixed Costs Net Income 60% Company B Amount % of P110,000 P 77,000 60,000 P 17,000 Calculate the degree of operating leverage of Company B

sales Sales 100% Variable costs 33,000 Company A Amount P110,000 30% 66.000 30,000 % of sales P 14,000 100% Contibution Margin P 44,000 40% 70% Fixed Costs Net Income 60% Company B Amount % of P110,000 P 77,000 60,000 P 17,000 Calculate the degree of operating leverage of Company B

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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sales Sales 100% Company A Amount % of sales P110,000 Variable costs 33,000 Contibution Margin P 44,000 70% Fixed Costs Net Income 30% 66.000 30,000 P 14,000 100% 60% 40% Company B Amount % of P110,000 P 77,000 60,000 P 17,000 Calculate the degree of operating leverage of Company B
Transcribed Image Text:sales Sales 100% Company A Amount % of sales P110,000 Variable costs 33,000 Contibution Margin P 44,000 70% Fixed Costs Net Income 30% 66.000 30,000 P 14,000 100% 60% 40% Company B Amount % of P110,000 P 77,000 60,000 P 17,000 Calculate the degree of operating leverage of Company B
sales Sales 100% Variable costs 30% Company A Amount % of sales P110.000 66,000 Contibution Margin P 44,000 70% Fixed Costs Net Income 30,000 P 14,000 100% 60% 40% Company B Amount % of P110.000 33,000 P 77,000 60,000 P 17,000 Calculate the degree of operating leverage of Company A
Transcribed Image Text:sales Sales 100% Variable costs 30% Company A Amount % of sales P110.000 66,000 Contibution Margin P 44,000 70% Fixed Costs Net Income 30,000 P 14,000 100% 60% 40% Company B Amount % of P110.000 33,000 P 77,000 60,000 P 17,000 Calculate the degree of operating leverage of Company A
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