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The company specializes in pool maintenance. The most recent monthly contribution format income statement is as follows: Category Amount ($) Percent of Sales (%) Sales 180,000 100% Variable Expenses 81,000 45% Contribution Margin 99,000 55% Fixed Expenses 72,000 Net Operating Income 27,000 Requirement: Compute the company's Degree of Operating Leverage (DOL).

The company specializes in pool maintenance. The most recent monthly contribution format income statement is as follows: Category Amount ($) Percent of Sales (%) Sales 180,000 100% Variable Expenses 81,000 45% Contribution Margin 99,000 55% Fixed Expenses 72,000 Net Operating Income 27,000 Requirement: Compute the company's Degree of Operating Leverage (DOL).

Managerial Accounting
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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The company specializes in pool maintenance. The most recent monthly contribution format income statement is as follows: Category Amount ($) Percent of Sales (%) Sales 180,000 100% Variable Expenses 81,000 45% Contribution Margin 99,000 55% Fixed Expenses 72,000 Net Operating Income 27,000 Requirement: Compute the company's Degree of Operating Leverage (DOL).
Transcribed Image Text:The company specializes in pool maintenance. The most recent monthly contribution format income statement is as follows: Category Amount ($) Percent of Sales (%) Sales 180,000 100% Variable Expenses 81,000 45% Contribution Margin 99,000 55% Fixed Expenses 72,000 Net Operating Income 27,000 Requirement: Compute the company's Degree of Operating Leverage (DOL).
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