Question
Jennifer David sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue $51,000 Cost of goods sold
Jennifer David sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue $51,000 Cost of goods sold (all variable) 27,000 Gross margin 24,000 Selling expenses (70% variable) 8,000 Administrative expenses (20% variable) 12,000 Operating income $4,000
What is Jennifers degree of operating leverage?
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
7th edition
978-1118344262, 111834426X, 1118162285, 978-1118562208, 1118562208, 978-1118162286
