Question
A company achieved a target operating income of $30,000 last year. Variable expenses are 65% of sales, and fixed expenses are $7,500. The company's
A company achieved a target operating income of $30,000 last year. Variable expenses are 65% of sales, and fixed expenses are $7,500. The company's sales volume declined by 12% this year. Assuming that there is no change in total fixed expenses, compute the Degree of operating leverage this year. (Round to the two nearest decimal places) ANS:
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Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
978-0137030385
