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Morse Company reports a total contribution margin of $48,000 and pretax net income of $12,000 for the current month. The degree of operating leverage is: a) 4.0 b) 0.25 c) 1.25 d) 2.5 e) 250%

Morse Company reports a total contribution margin of $48,000 and pretax net income of $12,000 for the current month. The degree of operating leverage is: a) 4.0 b) 0.25 c) 1.25 d) 2.5 e) 250%

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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Accounting. The operating levaragyis.

Morse Company reports a total contribution margin of $48,000 and pretax net income of $12,000 for the current month. The degree of operating leverage is: a) 4.0 b) 0.25 c) 1.25 d) 2.5 e) 250%
Transcribed Image Text:Morse Company reports a total contribution margin of $48,000 and pretax net income of $12,000 for the current month. The degree of operating leverage is: a) 4.0 b) 0.25 c) 1.25 d) 2.5 e) 250%
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