Paul's company recently made some changes that affected many of the amounts on its income statement. For
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Question:
Paul's company recently made some changes that affected many of the amounts on its income statement. For example, the company's contribution margin is now $450,000, from $200,000 before. However, the company's net income has remained the same at $110,000.
What is the new degree of operating leverage of Paul's company?
Expert Answer:
To calculate the degree of operating leverage DOL we need to use the formula DOL Contribution Mar... View the full answer
Related Book For 
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
