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Engberg Company has the following recent monthly income statement: Sales: $120,000 Variable Expenses: $48,000 Contribution Margin: $72,000 Fixed Expenses: $52,000 Net Operating Income: $20,000 What is Engberg's degree of operating leverage?

Engberg Company has the following recent monthly income statement: Sales: $120,000 Variable Expenses: $48,000 Contribution Margin: $72,000 Fixed Expenses: $52,000 Net Operating Income: $20,000 What is Engberg's degree of operating leverage?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 22MC: If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month,...
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Engberg Company has the following recent monthly income statement: Sales: $120,000 Variable Expenses: $48,000 Contribution Margin: $72,000 Fixed Expenses: $52,000 Net Operating Income: $20,000 What is Engberg's degree of operating leverage?
Transcribed Image Text:Engberg Company has the following recent monthly income statement: Sales: $120,000 Variable Expenses: $48,000 Contribution Margin: $72,000 Fixed Expenses: $52,000 Net Operating Income: $20,000 What is Engberg's degree of operating leverage?
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