Accounting. What is degree of operating leverage? Kendall Company has sales of 1,500units at $50 a unit. Variable expensesare 40% of the selling price. If total fixedexpenses are $35,000, what is thedegree of operating leverage?

Step 1:- Define Operating LeverageOperating leverage measures the degree to which a company can…

Answered: Kendall Company has sales of 1,500…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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Bristo Corporation has sales of 1,000 units at $60 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $26,000, the degree of operating leverage is:
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Kendall Company has sales of 1,500 units at $50 a unit. Variable expenses are 40% of the selling price. If total fixed expenses are $35,000, what is the degree of operating leverage?