- This topic has 1 reply, 2 voices, and was last updated 4 months ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Lake Co has operating gearing of 160%. it calculates operating gearing by dividing contribution by operating profit.
How much will LAke Co’s operating profit fall by if its sales volume reduces by 20%.
In the answer given, the operating profit was divided by the contribution.
but in the question, it states that the operating gearing was calculated by dividing contribution by operating profit.What am I missing?
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.