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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

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
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Variable expenses:195000, fixed expenses:84000

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
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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