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Marysya12 [62]
3 years ago
7

The February contribution format income statement of XYZ Corporation appears below: Sales $ 169,500 Variable expenses 96,000 Con

tribution margin 73,500 Fixed expenses 58,000 Net operating income $ 15,500 The degree of operating leverage is closest to:
Business
1 answer:
Liono4ka [1.6K]3 years ago
4 0

Answer:

degree of operating leverage= 4.742

Explanation:

Giving the following information:

Contribution margin 73,500

Net operating income $ 15,500

<u>To calculate the degree of operational leverage, we need to use the following formula:</u>

degree of operating leverage= Total contribution margin / operating income

degree of operating leverage= 73,500 / 15,500

degree of operating leverage= 4.742

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