The following are ABC’s balances for last month: sales, P2 million; variable expenses, P1.4 million; fixed expenses, P360,000. The company has no beginning and ending inventories. A total of 40,000 units were produced and sold last month. What is the company’s degree of operating leverage?
The following are ABC’s balances for last month: sales, P2 million; variable expenses, P1.4 million; fixed expenses, P360,000. The company has no beginning and ending inventories. A total of 40,000 units were produced and sold last month. What is the company’s degree of operating leverage?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following are ABC’s balances for last month: sales, P2 million; variable expenses, P1.4 million; fixed expenses, P360,000. The company has no beginning and ending inventories. A total of 40,000 units were produced and sold last month. What is the company’s degree of operating leverage?
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