What is it's degree of operating leverage on these financial accounting question? Stellar Systems Ltd. has fixed costs of $400,000 and a profitof $200,000. What is its degree of operating leverage?a) 0.5b) 1.5c) 2.0d) 3.0

Step 1: Define Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL) measures how…

Answered: Stellar Systems Ltd. has fixed costs of…

Stellar Systems Ltd. has fixed costs of $400,000 and a profit of $200,000. What is its degree of operating leverage? a) 0.5 b) 1.5 c) 2.0 d) 3.0

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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Question

What is it's degree of operating leverage on these financial accounting question?

Stellar Systems Ltd. has fixed costs of $400,000 and a profit
of $200,000. What is its degree of operating leverage?
a) 0.5
b) 1.5
c) 2.0
d) 3.0

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