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What is Destination Travel current operating leverage factor

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Reference no: EM132706333

Destination Travel uses the contribution margin income statement internally. Destination's ?first-quarter results follow. Destination's relevant range is between sales of $203,000 and $466,000.

Problem 1. What is Destination Travel's current margin of safety (in dollars)?

Problem 2. What is Destination Travel's current operating leverage factor?

Problem 3. If sales volume increases 5% next quarter, by what percentage will Destination Travel's operating income increase? What will the new operating income? be?

Reference no: EM132706333

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