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Serfass Corporation's contribution format income statement for July appears below: Sales $ 260,000 176,000 Variable expenses Contribution margin 84,000 Fixed expenses 71,800 Net operating income $ 12,200 The degree of operating leverage is closest to: A) 0.05 B) 0.15 C) 21.31 D) 6.89

Serfass Corporation's contribution format income statement for July appears below: Sales $ 260,000 176,000 Variable expenses Contribution margin 84,000 Fixed expenses 71,800 Net operating income $ 12,200 The degree of operating leverage is closest to: A) 0.05 B) 0.15 C) 21.31 D) 6.89

SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter22: S Corporations
Section: Chapter Questions
Problem 16CE
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The degree of operating leverage is closest to:

Serfass Corporation's contribution format income statement for July appears below: Sales $ 260,000 176,000 Variable expenses Contribution margin 84,000 Fixed expenses 71,800 Net operating income $ 12,200 The degree of operating leverage is closest to: A) 0.05 B) 0.15 C) 21.31 D) 6.89
Transcribed Image Text:Serfass Corporation's contribution format income statement for July appears below: Sales $ 260,000 176,000 Variable expenses Contribution margin 84,000 Fixed expenses 71,800 Net operating income $ 12,200 The degree of operating leverage is closest to: A) 0.05 B) 0.15 C) 21.31 D) 6.89
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