At the budgeted sales level of 10,000 units, what is the company's degree of operating leverage?

A) 10.0
B) 6.0
C) 22.5
D) 5.0

Question

At the budgeted sales level of 10,000 units, what is the company's degree of operating leverage?A) 10.0B) 6.0C) 22.5D) 5.0

Carissa Lemos · Accepted Answer

Final Answer : A, Explanation :    Degree of operating leverage = Contribution margin ÷ Net operating income= $200,000 ÷ $20,000 = 10.0Reference: CHO6-Ref26Maziarz Corporation produces and sells a single product.Data concerning that product appear below:

At the budgeted sales level of 10,000 units, what is the company's degree of operating leverage?

A) 10.0
B) 6.0
C) 22.5
D) 5.0

Definitions

Learning Objectives

Learning Objectives

Related questions