Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

14. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable

14. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words,
assume that the total variable expenses are $20,400 and the total fixed expenses are $59,500. Under this scenario and assuming
that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.)
image text in transcribed
! Required information (The following information apples applies to the questions displayed below.) Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 85,000 Variable expenses 59,500 Contribution margin 25,500 Fixed expenses 20,400 Net operating income $ 5,100 14. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $20,400 and the total fixed expenses are $59,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) ces Degree of operating leverage

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions

Question

Identify the parts of an introduction and conclusion

Answered: 1 week ago