Stratmore Inc.'s contribution format income statement for August appears below: Sales Variable expenses $300,000 $195,000 Contribution margin $105,000 Fixed expenses $84,000 Net operating income $21,000 The degree of operating leverage is closest to: A) 3.14 B) 2.00 C) 5.00 D) 1.25
Stratmore Inc.'s contribution format income statement for August appears below: Sales Variable expenses $300,000 $195,000 Contribution margin $105,000 Fixed expenses $84,000 Net operating income $21,000 The degree of operating leverage is closest to: A) 3.14 B) 2.00 C) 5.00 D) 1.25
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Operating leverage is closest

Transcribed Image Text:Stratmore Inc.'s contribution format income statement for August appears
below:
Sales
Variable expenses
$300,000
$195,000
Contribution margin $105,000
Fixed expenses
$84,000
Net operating income $21,000
The degree of operating leverage is closest to:
A) 3.14
B) 2.00
C) 5.00
D) 1.25
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