Assume total sales of $800,000, total variable costs of $400,000, ...

[unreallynx]

Question 1

The degree of operating leverage is calculated as
◦ contribution margin divided by sales.
◦ net operating income divided by contribution margin.
◦ net operating income divided by sales.
◦ contribution margin divided by net operating income.

Question 2

Assume total sales of $800,000, total variable costs of $400,000, and total fixed costs of $300,000. Of these amounts, $200,000 of the variable costs are product costs, and $100,000 of the fixed costs are period costs. What is the degree of operating leverage?
◦ 0.25
◦ 2.00
◦ 8.00
◦ 4.00

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[unreallynx]

Thanks for the timely response, appreciate it

[Dnite]

Excellent