Greenfield Landscaping Services installs garden turf in residential yards. The company's most recent monthly contribution format income statement is given below. Amount Percent of Sales Sales $150,000 Variable expenses $60,000 Contribution margin $90,000 Fixed expenses $30,000 Net operating income $60,000 What is the company's degree of operating leverage?
Greenfield Landscaping Services installs garden turf in residential yards. The company's most recent monthly contribution format income statement is given below. Amount Percent of Sales Sales $150,000 Variable expenses $60,000 Contribution margin $90,000 Fixed expenses $30,000 Net operating income $60,000 What is the company's degree of operating leverage?
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 5EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...
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What is the degree of operating leverage on these financial accounting question?
Transcribed Image Text:Greenfield Landscaping Services installs garden turf in residential yards. The
company's most recent monthly contribution format income statement is
given below.
Amount
Percent of Sales
Sales
$150,000
Variable expenses
$60,000
Contribution margin
$90,000
Fixed expenses
$30,000
Net operating income $60,000
What is the company's degree of operating leverage?
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