Hi expert provide correct answer general accounting Lofft Corporation has provided the following contribution format incomestatement. Assume that the following information is within the relevantrange.Sales (2,000 units): $ 120,000Variable expenses : 90,000Contribution margin : 30,000Fixed expenses: 16,500Net operating income: $ 13,500Using the degree of operating leverage, the estimated percent increase innet operating income as the result of a 10% increase in sales volume isclosest to: (Round your intermediate calculations to 1 decimal place.)a. 88.89%b. 22.22%c. 1.13%d. 4.50%

Step 1: Definition of Degree of Operating Leverage (DOL)The degree of operating leverage (DOL)…

Answered: Lofft Corporation has provided the…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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