The degree of operating leverage for The degree of operating leverage (DOL) forNeptune Inc. and Ardent Ltd. are 2.3 and 4.9,respectively. Both companies have net incomesof $62,450.Determinetheir respectiverespective contributionmargins.

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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 degree of operating leverage (DOL) for Neptune Inc. and Ardent Ltd. are 2.3 and 4.9, respectively. Both companies have net incomes of $62,450. Determine their respective respective contribution margins.