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Sales revenue for Wholesales ehf is ISK 480,000. Its variable cost is 40% of sales and...

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Accounting

Sales revenue for Wholesales ehf is ISK 480,000. Its variablecost is 40% of sales and fixed costs are ISK 80,000.

1. What does the Wholesalers ehf need to sell for great value inorder for the business to be in balance (ie where income andexpenses are equal)?

2. What is the company's degree of operating leverage, etc.current sales?

3. If Wholesale Sales ehf's sales increase by 10%, how will theresults change? Calculate both the percentage change and the changein value.

Answer & Explanation Solved by verified expert
4.4 Ratings (782 Votes)
1 What does the Wholesalers ehf need to sell for great value in order for the business to be in balance ie where income and expenses are equal In order to to sell for great value in order for the business to be in balance ie where income and expenses are equal Wholesalers ehf needs to achieve break    See Answer
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