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Compare the two income statements below for TDFI. Notice how both income statements have the same Net Operating Income, but one statement has lower fixed
Compare the two income statements below for TDFI. Notice how both income statements have the same Net Operating Income, but one statement has lower fixed expense while the other statement has higher fixed expense: Comparison of two income statements. The first income statement has a selling price of $ variable expense per unit of $ units sold contribution margin $ and fixed expense $ The second income statement has selling price $ variable expense per unit $ units sold contribution margin $ and fixed expense $ Each income statement reuslts in a Net Operating Income $ Using the "low fixed expense income statement" where contribution margin $ fixed expenses $ and net operating income $ calculate the degree of operating leverage.
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