12. What is the degree of operating leverage? Degree of operating leverage
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
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Oslo Company prepared the following contribution format income statement based on a
sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
$
Degree of operating leverage
$
12. What is the degree of operating leverage?
20,000
12,000
8,000
6,000
2,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe27ff985-d84b-413a-9459-cc9e65fedb5e%2Fb4c2441a-8f4a-4286-94a7-6c6599265a51%2Fr2czmae_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Oslo Company prepared the following contribution format income statement based on a
sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
$
Degree of operating leverage
$
12. What is the degree of operating leverage?
20,000
12,000
8,000
6,000
2,000
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