Compute the company's degree of operating leverage at the present 5 Refer to the original data. Compute the company's margin of safety in and percentage form. both peso Compute the company's degree of...

Extracted text: Compute the company's degree of operating leverage at the present 5 Refer to the original data. Compute the company's margin of safety in and percentage form. both peso Compute the company's degree of operating leverage at the s level of sales. b. Assume that through a more intense effort by the sales staff, the company's sales increase by 8% next year. By what percentage would you expect net operating income to increase? Use the degree of operating leverage to obtain your answer.


Extracted text: Exercise 1 CVP Relationships high electromagnetic radiation environments. Kelter Company manufactures and sells a specialized cordless telephone contribution format income statement for the most recent year is grven L Exurcises CVP Relationships The companys or helow Total Per Unit % of Sales Sales (20,000 units) Less: Variable expenses Contribution margin Less Fixed expenses P1,200,000 P60 100% 900,000 45 P 300,000 15 240,000 Net operating income P 60,000 Management is anxious to improve the company's profit performance and bas asked for an analysis of a number of items. Required 1 Compute the company's CM ratio and variable expenses ratio.