Question
The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Amount Percent Sales $
The sales and cost data for two companies in the transportation industry are as follows:
| X Company | Y Company | |||
|---|---|---|---|---|
| Amount | Percent | Amount | Percent | |
| Sales | $ 156,000 | 100.00 | $ 156,000 | 100.00 |
| Variable costs | 93,600 | 60.00 | 46,800 | 30.00 |
| Contribution margin | 62,400 | 40.00 | 109,200 | 70.00 |
| Fixed costs | 34,350 | 70,400 | ||
| Operating income (B) | $ 28,050 | $ 38,800 | ||
X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be:
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Financial Accounting A Business Perspective
Authors: Jefferson Williams, Roger Hermanson, James Don Edwards
10th Edition
1930789793, 978-1930789791
