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The following CVP income statements are available for Sandhill Corp. and Wildhorse, Inc. Sales revenue Variable costs Contribution margin Fixed costs Net income (a) Sandhill
The following CVP income statements are available for Sandhill Corp. and Wildhorse, Inc. Sales revenue Variable costs Contribution margin Fixed costs Net income (a) Sandhill Sandhill Corp. Wildhorse $686,000 306,250 379,750 257,250 $122,500 Wildhorse, Inc. Degree of Operating Leverage $686,000 171,500 514,500 Compute the degree of operating leverage for each company. (Round answers to 1 decimal place, e.g. 15.5.) 392,000 $122,500
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