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A company that makes organic fertilizer has supplied the following data: Bags produced and sold 200,000 Sales revenue $ 1,560,000 Variable manufacturing expense $ 660,000
A company that makes organic fertilizer has supplied the following data:
Bags produced and sold | 200,000 | |
Sales revenue | $ | 1,560,000 |
Variable manufacturing expense | $ | 660,000 |
Fixed manufacturing expense | $ | 448,000 |
Variable selling and administrative expense | $ | 180,000 |
Fixed selling and administrative expense | $ | 214,000 |
Net operating income | $ | 58,000 |
The company's degree of operating leverage is closest to:
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