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The following is Allison Corporation's contribution format income statement for last month: Sales: $800,000 Variable Expenses: $300,000 Contribution Margin: $500,000 Fixed Expenses: $400,000 Net Operating

The following is Allison Corporation's contribution format income statement for last month:

Sales: $800,000

Variable Expenses: $300,000

Contribution Margin: $500,000

Fixed Expenses: $400,000

Net Operating Income: $100,000

The company has no beginning or ending inventories. The company produced and sold 10,000 units last month. What is the Company's degree of operating leverage?

8.0

.2

1.7

5.0

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