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Sales (100,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30) Net Income $1.000.000 300.000 700,000 200,000 500.000

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Sales (100,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30) Net Income $1.000.000 300.000 700,000 200,000 500.000 75.000 425.000 127,500 $297,500 Refer to the table. The degree of operating leverage S Select one: O a. 1.56x Ob.3.33% O c. 2.22% O d. 1.40x Sales (1,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30) Net Income Shares Outstanding $200,000 110,000 90,000 40.000 50.000 10,000 40,000 12.000 $28.000 1.000 Refer to the table. The degree of operating leverage (DOL) Select one: O a. 1.40x O b. 1.62x O c. 3.50x O d. 1.80X

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