What is the degree of operating leverage? Kendall Company has sales of 1,990 unitsat $63 a unit. Variable expenses are 42%of the selling price. If total fixedexpenses are $64,000, what is thedegree of operating leverage?

Step 1: The degree of operating leverage can be calculated by dividing the contribution margin by…

Answered: Kendall Company has sales of 1,990…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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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?