Question
The following is Addison Corporation's contribution format income statement for last month: Sales $1,000,000 Less: variable expenses 700,000 Contribution margin 300,000 Less: fixed expenses 180,000
The following is Addison Corporation's contribution format income statement for last month:
Sales $1,000,000
Less: variable expenses 700,000
Contribution margin 300,000
Less: fixed expenses 180,000
Operating income $120,000
The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month. What is the company's degree of operating leverage?
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Data Analysis And Decision Making
Authors: Christian Albright, Wayne Winston, Christopher Zappe
4th Edition
538476125, 978-0538476126
