Suppose Sandy sales 1,000 posters. Her average sale price is $32 and her average cost for posters is $12. her fixed expenses total $12,000
Compute her operating leverage factor. If sales volume increase 4%. What chart percentage will her operating income change? Prove your answer. (Your answer should be two decimal places).
Formula: Contribution Margin / Operating Income.
If sales volume increase 4%, by what percentage will her operating income change? (Round the percentage to nearest percent).