The sales and cost data for two companies in the transportation industry are as follows: Y...
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The sales and cost data for two companies in the transportation industry are as follows: Y Company X Company Amount $120,000 72,000 Sales Variable costs Contribution margin 48,000 Fixed costs 36,000 Operating income (TB) $ 12,000 Percent 100 60 40 Amount $120,000 36,000 84,000 72,000 $ 12,000 Percent 100 30 70 X Company's degree of operating leverage (DOL) at the current sales volume level is? The sales and cost data for two companies in the transportation industry are as follows: Y Company X Company Amount $120,000 72,000 Sales Variable costs Contribution margin 48,000 Fixed costs 36,000 Operating income (TB) $ 12,000 Percent 100 60 40 Amount $120,000 36,000 84,000 72,000 $ 12,000 Percent 100 30 70 X Company's degree of operating leverage (DOL) at the current sales volume level is?
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To calculate the degree of operating leverage DOL for X Company well use the follo... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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