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Kendall Company has sales of 2,375 units at $40 a unit. Variable expenses are 20% of the selling price. If total fixed expenses are $66,000, what is the degree of operating leverage? a. 7.60 b. 1.90 c. 2.07 d. 9.50

Kendall Company has sales of 2,375 units at $40 a unit. Variable expenses are 20% of the selling price. If total fixed expenses are $66,000, what is the degree of operating leverage? a. 7.60 b. 1.90 c. 2.07 d. 9.50

Principles of Accounting Volume 2
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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What is the degree of opereting leverage?

Kendall Company has sales of 2,375 units at $40 a unit. Variable expenses are 20% of the selling price. If total fixed expenses are $66,000, what is the degree of operating leverage? a. 7.60 b. 1.90 c. 2.07 d. 9.50
Transcribed Image Text:Kendall Company has sales of 2,375 units at $40 a unit. Variable expenses are 20% of the selling price. If total fixed expenses are $66,000, what is the degree of operating leverage? a. 7.60 b. 1.90 c. 2.07 d. 9.50
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