What will be study volts degree of operating leverage

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Study Volt has the following financial information: Unit Sales 88000 Revenue $ 8800000 Variable Costs $ 2200000 Contribution Margin $ 6 600000 Fixed Costs $ 1820000 Operating Income $ 4 780000. What is study volt degree of operating leverage? A 10% increase in sales will generate what percent increase in operating income? To deal with an industry wide labor shortage, Study Volt has decided to increase automation on its production line. Doing so will decrease variable costs by 60% but will increase fixed costs by $2000000. Assuming constant sales, if Study Volt reconfigures its production line, what will be the change in study volt's operating income? If study volt reconfigures its production line, what will be the study volts degree of operating leverage? Get the instant assignment help. If study volt reconfigures its production line, a 10% increase in sales will generate what percent increase in operating income?

Reference no: EM133906398

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