Atlas Manufacturing reports a total contribution margin of $240,000 and pretax net income of $40,000 for the current quarter. What is the company's degree of operating leverage?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 8EA: Using the information in the previous exercises about Marleys Manufacturing, determine the operating...
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Atlas Manufacturing reports a total contribution margin of
$240,000 and pretax net income of $40,000 for the current
quarter. What is the company's degree of operating
leverage?
Transcribed Image Text:Atlas Manufacturing reports a total contribution margin of $240,000 and pretax net income of $40,000 for the current quarter. What is the company's degree of operating leverage?
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