Matrix Inc. has fixed operating costs of $180,000 and reports an operating profit of $90,000 for the year. What is the degree of operating leverage (DOL) for Matrix Inc.?

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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Please explain the solution to this general accounting problem using the correct accounting principles.
Matrix Inc. has fixed operating costs of $180,000 and reports an operating
profit of $90,000 for the year. What is the degree of operating leverage
(DOL) for Matrix Inc.?
Transcribed Image Text:Matrix Inc. has fixed operating costs of $180,000 and reports an operating profit of $90,000 for the year. What is the degree of operating leverage (DOL) for Matrix Inc.?
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