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

Step 1: Definition of Degree of Operating LeverageDegree of Operating Leverage (DOL) measures a…

Answered: Engberg Company has the following…

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?