Using the low fixed expense income statement calculate the degree of operating leverage. Low Fixed Expense Income

Using the "low fixed expense income statement"  calculate the degree of operating leverage.

  

Transcribed Image Text:

Low Fixed Expense Income Statement: Number of Units (Bags) sold Sales Variable Expense Contribution Margin Fixed Expense Net Operating Income per unit $10.00 $6.00 $4.00 100 # of units Total 100 $1,000.00 100 100 $600.00 $400.00 $300.00 $100.00 High Fixed Exper Number of Units Sales Variable Expense Contribution Ma Fixed Expense Net Operating In Low Fixed Expense Income Statement: Number of Units (Bags) sold Sales Variable Expense Contribution Margin Fixed Expense Net Operating Income per unit $10.00 $6.00 $4.00 100 # of units Total 100 $1,000.00 100 100 $600.00 $400.00 $300.00 $100.00 High Fixed Exper Number of Units Sales Variable Expense Contribution Ma Fixed Expense Net Operating In

Answer rating: 100% (QA)

Calculate the degree of operating leverage Given Contribution Margin 400... View the full answer