choose best answer Serfass Corporation's contribution format income statement for Julyappears below:SalesVariable expenses$307,800$153,900Contribution margin $153,900Fixed expenses$40,010Net operating income $113,890The degree of operating leverage is closest to:a. 0.37b. 0.74c. 2.00d. 1.35

Step 1: Definition of Degree of Operating Leverage (DOL)Degree of Operating Leverage (DOL) measures…

Answered: Serfass Corporation's contribution…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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Serfass Corporation's contribution format income statement for July appears below: Sales Variable expenses $307,800 $153,900 Contribution margin $153,900 Fixed expenses $40,010 Net operating income $113,890 The degree of operating leverage is closest to: a. 0.37 b. 0.74 c. 2.00 d. 1.35