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

Formula for Degree of Operating Leverage (DOL):DOL = Contribution Margin / Net Income We are given…

Answered: The degree of operating leverage (DOL)…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 25E

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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 contribution margins. respective