Use the following information for question. LSB Company has the following income statement: Revenues .........................$100,000 Variable Costs

Question:

Use the following information for question. LSB Company has the following income statement:

Revenues .........................$100,000

Variable Costs ...................$40,000

Fixed Costs ........................$30,000

Operating Income ..............$30,000

What is LSB’s DOL?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...