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The October contribution format income statement of Horizon Corporation appears below: Sales: $1,250,000 ⚫ Variable expenses: $750,000 ⚫ Contribution margin: $500,000 • ⚫ Fixed expenses: $350,000 • ⚫ Net operating income: $150,000 What is the degree of operating leverage for Horizon Corporation?

The October contribution format income statement of Horizon Corporation appears below: Sales: $1,250,000 ⚫ Variable expenses: $750,000 ⚫ Contribution margin: $500,000 • ⚫ Fixed expenses: $350,000 • ⚫ Net operating income: $150,000 What is the degree of operating leverage for Horizon Corporation?

Managerial Accounting
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 October contribution format income statement of Horizon Corporation appears below: Sales: $1,250,000 ⚫ Variable expenses: $750,000 ⚫ Contribution margin: $500,000 • ⚫ Fixed expenses: $350,000 • ⚫ Net operating income: $150,000 What is the degree of operating leverage for Horizon Corporation?
Transcribed Image Text:The October contribution format income statement of Horizon Corporation appears below: Sales: $1,250,000 ⚫ Variable expenses: $750,000 ⚫ Contribution margin: $500,000 • ⚫ Fixed expenses: $350,000 • ⚫ Net operating income: $150,000 What is the degree of operating leverage for Horizon Corporation?
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