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Parker Company has provided the following data for the most recent year: net operating income, $33,000; fixed expense, $94,200; sales, $212,000; and CM ratio, 60%. What is the company's degree of operating leverage? A. 3.85 B. 1.35 C. 0.26 D. 0.60

Parker Company has provided the following data for the most recent year: net operating income, $33,000; fixed expense, $94,200; sales, $212,000; and CM ratio, 60%. What is the company's degree of operating leverage? A. 3.85 B. 1.35 C. 0.26 D. 0.60

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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Parker Company has provided the following data for the most recent year: net operating income, $33,000; fixed expense, $94,200; sales, $212,000; and CM ratio, 60%. What is the company's degree of operating leverage? A. 3.85 B. 1.35 C. 0.26 D. 0.60
Transcribed Image Text:Parker Company has provided the following data for the most recent year: net operating income, $33,000; fixed expense, $94,200; sales, $212,000; and CM ratio, 60%. What is the company's degree of operating leverage? A. 3.85 B. 1.35 C. 0.26 D. 0.60
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