Statement of Comprehensive Income for Brooklyn Company for the current year is Sales P750,000 Variable cost 600,000 Contribution margin 150,000 Fixed cost 100,000 Operating income P50,000 Required: a. Break-even point b. Margin of safety c. Margin of safety ratio d. Degree of operating leverage e. Suppose the company experiences a 30% increase in revenues, compute for the percentage change in profits.

Principles of Accounting Volume 2
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Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...
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Statement of Comprehensive Income for Brooklyn Company for the current year is
Sales P750,000
Variable cost 600,000
Contribution margin 150,000
Fixed cost 100,000
Operating income P50,000
Required:
a. Break-even point
b. Margin of safety
c. Margin of safety ratio
d. Degree of operating leverage
e. Suppose the company experiences a 30% increase in revenues, compute for the
percentage change in profits.

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