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Dorothy Thomas sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue $48,000 Cost of goods sold
Dorothy Thomas sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue $48,000 Cost of goods sold (all variable) 20,000 Gross margin 28,000 Selling expenses (70% variable) 8,000 Administrative expenses (20% variable) 12,000 Operating income $8,000 (a) What is Dorothys degree of operating leverage? (Round answer to 2 decimal places, e.g. 52.75.)
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