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problem: Understanding effects of operating leverage High Tech, Company, & Old-time Co compete with in the same industry & had the following operating results in 2008:


High Tech

Old time




Variable expenses



Contribution Margin



Fixed expenses



Operating income



[1] Multiply your answer in requirement G) by the operating income of dollar 210,000 reported in 2008 for each firm.

[2] Compare and contrast your answer in requirement H with your answer in requirement D. What conclusions can you draw about the effects of operating leverage from the steps you performed in requirements F, G, & H?

Cost Accounting, Accounting

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