Question
Calculate the degree of operating leverage given the following information: sales of $25,000: variable costs of $13,000, and operating income of $7,000 for one year,
Calculate the degree of operating leverage given the following information: sales of $25,000: variable costs of $13,000, and operating income of $7,000 for one year, and sales of $40,000; variable costs of $15,000; and operating income of $16,000 for year two. The answer should be expressed as a percentage, and rounded to two decimal places.
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
4th Canadian edition
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