3 (27) A company reported the following data: Sales Variable operating costs Contribution margin Fixed operating costs Operating income $300,000 ($120,000) $180,000 ($100,000) $80,000 What is this company's degree of operating leverage using these data? 1.25 O 1.50 2.25 O 3.75

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 16E
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(27) A company reported the following data:
Sales
Variable operating costs
Contribution margin
Fixed operating costs
Operating income
$300,000
($120,000)
$180,000
($100,000)
$80,000
What is this company's degree of operating leverage using these data?
1.25
O 1.50
2.25
O 3.75
Transcribed Image Text:3 (27) A company reported the following data: Sales Variable operating costs Contribution margin Fixed operating costs Operating income $300,000 ($120,000) $180,000 ($100,000) $80,000 What is this company's degree of operating leverage using these data? 1.25 O 1.50 2.25 O 3.75
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