Question
Carla Vista Co. Sandhill Co. Sales $503,000 $503,000 Variable costs 248,000 45,000 Contribution margin 255,000 458,000 Fixed costs 155,000 358,000 Net income $100,000 $100,000
Carla Vista Co. Sandhill Co. Sales $503,000 $503,000 Variable costs 248,000 45,000 Contribution margin 255,000 458,000 Fixed costs 155,000 358,000 Net income $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Carla Vista Degree of Operating Leverage 155000 Sandhill 358000
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