What is the contribution margin and what is net income

Assignment Help Accounting Basics

Reference no: EM133610929

Question: Total Revenues $157000 Total fixed costs $92000 Total variable costs $25000 Total units produced and sold 10000 Dagger Company produces one type of machine with the above costs and revenues for the year.

1. What is the contribution margin?

2. What is net income?

3. What is the degree of operating leverage? Round to the nearest 100th (two places to the right of the decimal.)

4. If Dagger Company's sales volume increases by 20%, what will net income be?

Hints: Compute with the degree of operating leverage or there will be rounding differences.

Reference no: EM133610929

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