Problem related to financial accounting: Sims Nursery sells plants and gardening supplies to residential customers. The company's most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $95,000 Variable Expenses $38,000 Contribution Margin $57,000 Fixed Expenses $42,000 Net Operating Income $15,000 Compute the company's degree of operating leverage.
Problem related to financial accounting: Sims Nursery sells plants and gardening supplies to residential customers. The company's most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $95,000 Variable Expenses $38,000 Contribution Margin $57,000 Fixed Expenses $42,000 Net Operating Income $15,000 Compute the company's degree of operating leverage.
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 1P
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Please provide the accurate solution to this financial accounting question using valid calculations.
Transcribed Image Text:Problem related to financial accounting:
Sims Nursery sells plants and gardening supplies to residential
customers. The company's most recent monthly contribution format
income statement follows:
Amount
Percent of Sales
Sales
$95,000
Variable Expenses
$38,000
Contribution Margin
$57,000
Fixed Expenses
$42,000
Net Operating Income $15,000
Compute the company's degree of operating leverage.
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