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The contribution format income statement of ABC Company for the year ended December 31, 2022, is as follows: Sales $1,200,000 Variable expenses 720,000 Contribution margin 480,000 Fixed expenses360,000Net operating income$120,000 Calculate the degree of operating leverage for ABC Company.

The contribution format income statement of ABC Company for the year ended December 31, 2022, is as follows: Sales $1,200,000 Variable expenses 720,000 Contribution margin 480,000 Fixed expenses360,000Net operating income$120,000 Calculate the degree of operating leverage for ABC Company.

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 contribution format income statement of ABC Company for the year ended December 31, 2022, is as follows: Sales $1,200,000 Variable expenses 720,000 Contribution margin 480,000 Fixed expenses360,000Net operating income$120,000 Calculate the degree of operating leverage for ABC Company.
Transcribed Image Text:The contribution format income statement of ABC Company for the year ended December 31, 2022, is as follows: Sales $1,200,000 Variable expenses 720,000 Contribution margin 480,000 Fixed expenses360,000Net operating income$120,000 Calculate the degree of operating leverage for ABC Company.
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