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Compute the degree of operating leverage for Roasted Beans and Monat Industries The following CVP income statements are available for Roasted Beans and Monat Industries
Compute the degree of operating leverage for Roasted Beans and Monat Industries
The following CVP income statements are available for Roasted Beans and Monat Industries
Roasted Beans | Monat Industries | |
Sales | 1,000,000 | 1,000,000 |
Variable Cost | 650,000 | 300,000 |
Contribution Margin | 350,000 | 700,000 |
Fixed Costs | 175,000 | 525,000 |
Net income | 175,000 | 175,000 |
Title | Formula | Roasted Beans | Monat Industries |
Degree of Operating Leverage | Contribution Margin/Net income | 1. | 2. |
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