If the demand for a product was 16, 28, 20 and 24 units in four consecutive months, and the corresponding forecasts in those fou
1 answer:
You might be interested in
Answer: 3.91
Explanation: We can calculate operating leverage by using following formula:-
where,
contribution = sales - variable cost
= sales - ( variable cost of goods sold + supplies )
= $52,260 - ( $26,260 + $5460)
= $20,540
Now, putting the values into equation we get :-
= 3.91