The Kandy Shop has an operating profit of $13,000.

a) Calculate the degree of operating leverage for each of the independent cases (assuming operating profit is held constant):

i. Contribution Margin is $57,000.
ii. CM ratio is 52% and revenue is $144,000.
iii. Selling price per unit is $34, variable costs per unit are $5 and it sold 4,400 units.
Do not enter dollar signs or commas in the input boxes.
Round contribution margin and operating income to the nearest whole number. Round the degree of operating leverage to 2 decimal places.

	Contribution Margin	Operating Profit	Degree of Operating Leverage
i.	$Answer	$Answer	Answer
ii.	$Answer	$Answer	Answer
iii.	$Answer	$Answer	Answer

b) Which scenario has the largest degree of operating leverage?

Answer rating: 100% (QA)

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