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Exercise 11-15A (Static) Using contribution margin format income statement to measure the magnitude ...

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Accounting

Exercise 11-15A (Static) Using contribution margin format income statement to measure the magnitude
of operating leverage LO 11-3,11-4
The following income statement was drawn from the records of Joel Company, a merchandising firm:
Required
a. Reconstruct the income statement using the contribution margin format.
b. Calculate the magnitude of operating leverage. Round the answer to two decimal places.
c. Use the measure of operating leverage to determine the amount of net income Joel will earn if sales increase by 10 percent.
Complete this question by entering your answers in the tabs below.
Req A
Reconstruct the income statement using the contribution margin format.
JOEL COMPANY
Income Statement
For the Year Ended December 31, Year 1
image

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