Question: In the most recent month, Eckstrom Corporation's total contribution margin was $208,000 and its net operating income $39,400. Required: a. Compute the degree of operating
In the most recent month, Eckstrom Corporation's total contribution margin was $208,000 and its net operating income $39,400. Required: a. Compute the degree of operating leverage to two decimal places. b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 1% increase in sales.
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