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  3. 2. assuming that all the operating expenses are fi

2. assuming that all the operating expenses are fixed what will be the operating margin...

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Accounting

2. assuming that all the operating expenses are fixed what will be the operating margin percentage if sales increase by 25 percent? image
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The following information was taken from Logsden Manufacturing's trial balances as of December 31, 2010, and December 31, 2011. Accounts receivable Accounts payable Cost of Goods Sold Sales 12/31/2011 12/31/2010 $ 13,000 $17,000 22,000 15,000 140,000 119,000 274,000 239,000 12,000 11,000 47,000 16,000 1,000 28,500 16,000 Sales returns Retained earnings Dividends 5,000 Income from operations Net income 21,000 18,000 1. Calculate the gross profit margin and operating margin percentage for 2011. Round your answers to two decimal places. 2011 Gross profit margin percentage 46.56 % Operating margin percentage 2. Assuming that all of the operating expenses are fixed (or won't change as sales increase or decrease), what will be the operating margin percentage if sales increase by 25 percent? Round your answers to two decimal places Operating margin percentage 10.00 3% 10.88

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