The July contribution format income statement of Martinez Industries appears below: ⚫ Sales: $920,000 ⚫ Variable expenses: $552,000 ⚫ Contribution margin: $368,000 ⚫ Fixed expenses: $310,000 ⚫ Net operating income: $58,000 What is the degree of operating leverage for Martinez Industries?
The July contribution format income statement of Martinez Industries appears below: ⚫ Sales: $920,000 ⚫ Variable expenses: $552,000 ⚫ Contribution margin: $368,000 ⚫ Fixed expenses: $310,000 ⚫ Net operating income: $58,000 What is the degree of operating leverage for Martinez Industries?
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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Transcribed Image Text:The July contribution format income statement of Martinez Industries
appears below:
⚫ Sales: $920,000
⚫ Variable expenses: $552,000
⚫ Contribution margin: $368,000
⚫ Fixed expenses: $310,000
⚫ Net operating income: $58,000
What is the degree of operating leverage for Martinez Industries?
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