Serfass 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 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 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 closest to: A) 0.05 B) 0.15 C) 21.31 D) 6.89
Chapter22: S Corporations
Section: Chapter Questions
Problem 16CE
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Serfass corporation's contribution format income statement for July appears below:
Transcribed Image Text:Serfass 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 closest to:
A) 0.05
B) 0.15
C) 21.31
D) 6.89
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