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What is the degree of operating leverage? (Round your answer to 2 decimal places.) Riverside Manufacturing prepared the following contribution format income statement based on a sales volume of 3,000 units (the relevant range of production is 2,000 units to 4,000 units): Sales Variable expenses Fixed expenses Amount $120,000 $72,000 Contribution margin $48,000 $30,000 Net operating income $18,000

What is the degree of operating leverage? (Round your answer to 2 decimal places.) Riverside Manufacturing prepared the following contribution format income statement based on a sales volume of 3,000 units (the relevant range of production is 2,000 units to 4,000 units): Sales Variable expenses Fixed expenses Amount $120,000 $72,000 Contribution margin $48,000 $30,000 Net operating income $18,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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What is the degree of operating leverage? (Round your answer to 2 decimal places.) Riverside Manufacturing prepared the following contribution format income statement based on a sales volume of 3,000 units (the relevant range of production is 2,000 units to 4,000 units): Sales Variable expenses Fixed expenses Amount $120,000 $72,000 Contribution margin $48,000 $30,000 Net operating income $18,000
Transcribed Image Text:What is the degree of operating leverage? (Round your answer to 2 decimal places.) Riverside Manufacturing prepared the following contribution format income statement based on a sales volume of 3,000 units (the relevant range of production is 2,000 units to 4,000 units): Sales Variable expenses Fixed expenses Amount $120,000 $72,000 Contribution margin $48,000 $30,000 Net operating income $18,000
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