Question
The sales and cost data for two companies in the transportation industry are as follows: X CompanyY CompanyAmountPercentAmountPercentSales$126,000100.00$126,000100.00Variable costs75,60060.0037,80030.00Contribution margin50,40040.0088,20070.00Fixed costs36,15072,200Operating income ( B )$14,250$16,000
The sales and cost data for two companies in the transportation industry are as follows:
X CompanyY CompanyAmountPercentAmountPercentSales$126,000100.00$126,000100.00Variable costs75,60060.0037,80030.00Contribution margin50,40040.0088,20070.00Fixed costs36,15072,200Operating income (B)$14,250$16,000
XCompany'sdegree of operating leverage (DOL) at the current sales volume level is calculated to be:
Multiple Choice
- 6.00
- 5.00
- 3.54
- 7.00
- 3.00
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Cost Management A Strategic Emphasis
Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith
8th Edition
1259917029, 978-1259917028
