Question: Surdas Corporation's contribution format income statement for July appears below: Sales Variable expenses $ 260,000 176,000 Contribution margin 84,000 Fixed expenses 71,800 Net operating income $ 12,200 The degree of operating leverage is ?

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
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Surdas Corporation

Question:
Surdas Corporation's contribution format income statement for July appears
below:
Sales
Variable expenses
$ 260,000
176,000
Contribution margin 84,000
Fixed expenses
71,800
Net operating income $ 12,200
The degree of operating leverage is ?
Transcribed Image Text:Question: Surdas Corporation's contribution format income statement for July appears below: Sales Variable expenses $ 260,000 176,000 Contribution margin 84,000 Fixed expenses 71,800 Net operating income $ 12,200 The degree of operating leverage is ?
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