Chapter 02 Cost Behavior, Operating Leverage, and ...
Answers will vary Feedback: 1) 2) Magnitude of operating leverage: Alpha Company = $300,000 contribution margin/$30,000 net income = 10 Gamma Company = $150,000 contribution margin/$30,000 net income = 5 3) Expected profits when sales increase by 10%: Alpha Company: 10%(10 magnitude of operating leverage = 100% If sales increase by 10%, net ... ................
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