Required information The Foundational 15 (Algo) [LO6-1, LO6-3, LO6-4, LO6-5, LO6-6, LO6-7, LO6-8] [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income Foundational 6-14 (Algo) $ 80,000 52,000 28,000 21,840 $ 6,160 14. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $21,840 and the total fixed expenses are $52,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage
Required information The Foundational 15 (Algo) [LO6-1, LO6-3, LO6-4, LO6-5, LO6-6, LO6-7, LO6-8] [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income Foundational 6-14 (Algo) $ 80,000 52,000 28,000 21,840 $ 6,160 14. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $21,840 and the total fixed expenses are $52,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
The Foundational 15 (Algo) [LO6-1, LO6-3, LO6-4, LO6-5, LO6-6,
LO6-7, LO6-8]
[The following information applies to the questions displayed below.]
Oslo Company prepared the following contribution format income
statement based on a sales volume of 1,000 units (the relevant range of
production is 500 units to 1,500 units):
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Foundational 6-14 (Algo)
$ 80,000
52,000
28,000
21,840
$ 6,160
14. Assume that the amounts of the company's total variable expenses and total fixed
expenses were reversed. In other words, assume that the total variable expenses are
$21,840 and the total fixed expenses are $52,000. Under this scenario and assuming that
total sales remain the same, what is the degree of operating leverage? (Round your answer
to 2 decimal places.)
Degree of operating leverage](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6071f575-a67c-4e20-8566-af7babec59de%2Fc2a17588-d782-45a8-afc6-eab12ac6903e%2F4jhcoz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
The Foundational 15 (Algo) [LO6-1, LO6-3, LO6-4, LO6-5, LO6-6,
LO6-7, LO6-8]
[The following information applies to the questions displayed below.]
Oslo Company prepared the following contribution format income
statement based on a sales volume of 1,000 units (the relevant range of
production is 500 units to 1,500 units):
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Foundational 6-14 (Algo)
$ 80,000
52,000
28,000
21,840
$ 6,160
14. Assume that the amounts of the company's total variable expenses and total fixed
expenses were reversed. In other words, assume that the total variable expenses are
$21,840 and the total fixed expenses are $52,000. Under this scenario and assuming that
total sales remain the same, what is the degree of operating leverage? (Round your answer
to 2 decimal places.)
Degree of operating leverage
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