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?
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?
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,...
Question
What is the degree of operating leverage
![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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d5a0418-47b1-4852-a6b1-6d1614cc5d44%2Fb90dd8db-62aa-4844-a662-1698decfcd4f%2F5vjnp0v_processed.jpeg&w=3840&q=75)
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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