Pineville Electronics Inc. provides the following contribution format income statement for the month of August: Sales: $300,000 Variable expenses: $180,000 Contribution margin: $120,000 Fixed expenses: $90,000 Net operating income: $30,000 What is the degree of operating leverage for Pineville Electronics Inc. for the month of August? A) 0.08 B) 0.18 C) 4.00 D) 8.00

Pineville Electronics Inc. provides the following contribution format income statement for the month of August: Sales: $300,000 Variable expenses: $180,000 Contribution margin: $120,000 Fixed expenses: $90,000 Net operating income: $30,000 What is the degree of operating leverage for Pineville Electronics Inc. for the month of August? A) 0.08 B) 0.18 C) 4.00 D) 8.00

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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