The February contribution format income statement of TiptonCorporation appears below:O 0.27O 6.79O 3.70SalesO 0.15Variable expensesThe degree of operating leverage is closest to:Contribution marginFixed expensesNet operating income.$$211,20096,000115,20084,10031,100

The February contribution format income statement of Tipton Corporation appears below: Sales. Variable expenses Contribution margin Fixed expenses Net operating income The degree of operating leverage is closest to: SA $ $ 211,200 96,000 115,200 84,100 31,100

The February contribution format income statement of Tipton Corporation appears below: Sales. Variable expenses Contribution margin Fixed expenses Net operating income The degree of operating leverage is closest to: SA $ $ 211,200 96,000 115,200 84,100 31,100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The February contribution format income statement of Tipton
Corporation appears below:
O 0.27
O 6.79
O 3.70
Sales
O 0.15
Variable expenses
The degree of operating leverage is closest to:
Contribution margin
Fixed expenses
Net operating income.
$
$
211,200
96,000
115,200
84,100
31,100

Expert Solution

Step 1

Solution:

Contribution margin = $115,200

Net operating income = $31,100

Degree of operating leverage = Contribution margin / Net operating income

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