Kendall 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?

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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Kendall 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?
Transcribed Image Text:Kendall 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?
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