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The following is Allison Corporations contribution format income statement for last month: Sales: $900,000 Variable Expenses
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Answer #1

Answer-The Company’s degree of operating leverage =2.0 times.

Explanation- Degree of operating leverage= Contribution margin/ Net Operating income

= $300000/($300000-$150000)

= $300000/$150000

= 2.0

Where- Net operating income = Contribution margin-Fixed costs                                                              

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