Assume the new plant is built and that next year the company manufactures and sells 30,000 balls (the same number as sold last year). prepare a contribution format income statement and compute the degree of operating leverage.

Instructions are listed below.

Explanation:

A Contribution Margin Income Statement is a special format of the income statement that segregates the variable and fixed expenses involved in running a business. It shows the revenue generated after deducting all variable and fixed expenses separately.

Sales=

Variable costs:

Cost of good sold=

Sales commissions=

Shipping expense=

Total variable cost (-)

Contribution margin=

Fixed costs:

Advertising expense=  

Shipping expense=

Administrative salaries=

Insurance expense=

Depreciation expense=

Total fixed cost= (-)

Net operating profit=

Degree of operating leverage= % change in EBIT/ % change in sales

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; no individual buyer or seller has any significant impact on the market price;