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Evermore Industries' contribution format income statement for August appears below: Item Sales Amount $320,000 $200,000 Contribution margin $120,000 Fixed expenses $85,000 Variable expenses Net operating income $35,000 The degree of operating leverage is closest to: A) 3.43 B) 4.25 C) 0.29 D) 5.78

Evermore Industries' contribution format income statement for August appears below: Item Sales Amount $320,000 $200,000 Contribution margin $120,000 Fixed expenses $85,000 Variable expenses Net operating income $35,000 The degree of operating leverage is closest to: A) 3.43 B) 4.25 C) 0.29 D) 5.78

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Evermore Industries' contribution format income statement for August appears below: Item Sales Amount $320,000 $200,000 Contribution margin $120,000 Fixed expenses $85,000 Variable expenses Net operating income $35,000 The degree of operating leverage is closest to: A) 3.43 B) 4.25 C) 0.29 D) 5.78
Transcribed Image Text:Evermore Industries' contribution format income statement for August appears below: Item Sales Amount $320,000 $200,000 Contribution margin $120,000 Fixed expenses $85,000 Variable expenses Net operating income $35,000 The degree of operating leverage is closest to: A) 3.43 B) 4.25 C) 0.29 D) 5.78
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