Question
Sale increased from $8,000 to $10,000. Due to the higher sale level, variable costs increased from $5,000 to $6,000. Fixed costs stay the same as
Sale increased from $8,000 to $10,000. Due to the higher sale level, variable costs increased from $5,000 to $6,000. Fixed costs stay the same as $1,500.
For this particular level of sales and costs, what is the Degree of operating leverage?
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The degree of operating leverage DOL measures the sensitivity of operating income to ch...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
