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Business, 14.10.2020 02:01 cicilee49

Vicki sells authentic Amish quilts on her website. Suppose Vicki expects to sell 1,000 quilts during the coming year. Her average sales price per quilt is $250, and her average cost per quilt is $150. Her fixed expenses total $50,000. Compute Vicki's operating leverage factor at an expected sales level of 1,000 quilts. If sales volume increases 20%, by what percentage will her operating income change? Prove your answer by calculating operating income at a sales volume of 1,000 and at a sales volume of 1,200.

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Vicki sells authentic Amish quilts on her website. Suppose Vicki expects to sell 1,000 quilts during...

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