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?
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?
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 11P
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What is the degree of opereting leverage? Given solution

Transcribed Image Text: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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