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P. 61
Five Greatest Ideas for Financing Your Business • 49
Second case
£ £
current additional 1 0%
110
sales 1 00 66
variable costs 60 44
contribution 40 30
fixed costs 30 14 (an increase of40%)
net profit 10
£
The operating leverage is 4. additional 1 0%
110
Third case 33
77
£ 60
current 1 7 (an increase of 70%)
sales 1 00 £
variable costs 30 additional 1 0%
contribution 70 110
fixed costs 60 0
net profit 10 110
90
The operating leverage is 7. 20 (an increase of 1 00%)
Fourth case
£
current
sales 1 00
variable costs 0
contribution 1 00
fixed costs 90
net profit 10
The operating leverage is 10.
