Horizon Company has sales of 2,000 units at $55 per unit. Variable expenses are 45% of the selling price. If total fixed expenses are $40,000, what is the degree of operating leverage?
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- Boom Company has sales volume of 70,000 units with a unit selling price of $120 per unit. The variable expenses are $80 per unit, and the total fixed expenses are $2,100,000. 15. What is the degree of operating leverage? * 2.00 3.00 4.00 5.00 None of the above 16. If the sales volume increases by 15%, and all other items are the same, what will be the effect on the net operating income? * The net operating income will increase by $420,000 The net operating income will increase by $700,000 The net operating income will increase by $1,120,000 The net operating income will increase by $2,800,000 None of the above O O OKendall Company has sales of 1,990 units at $63 a unit. Variable expenses are 42% of the selling price. If total fixed expenses are $64,000, what is the degree of operating leverage? Answer this QuestionWhat is the degree of operating leverage?