Degree of operating leverage = Contribution MArgin / operating income =
1) Operating Leverage = 700,000 /500,000= 1.40
2)Operating Leverage = 90,000 /50,000= 1.80
Answers :
D) 1.40X
D) 1.80 X
Sales (100,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes...
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