Waterway Company has a degree of operating leverage of 2. If the company's sales increase...

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Waterway Company has a degree of operating leverage of 2. If the company's sales increase from $204000 to $229500 by what percentage should its operating income increase? 100% 31.1% 25.0% 88.9% Sunland Company has sales of $494000, variable costs of $428000, and fixed costs of $23000, Bramble company has sales of $494000, variable costs of $198000, and fixed costs of $204240. Bramble's margin of safety ratio is 0.67 0.33 0.69 0.31 Brad Coronado Corporation sells two types of computers; one is designed for audio applications and the other for video applications. Coronado incurs $276500 in fixed costs. Per-unit data on the two products is presented below: Audio computer Video computer $1460 $1720 1050 1200 Unit data Selling price Variable costs Contribution margin Sales mix $410 $520 75% 25% How many audio computers are sold at the break-even point? 446 474 149 158

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