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Author Question: Jerry's Dog Food, Inc. is a dog food wholesaler located in Greenwich, Connecticut. Selected ... (Read 27 times)

Wadzanai

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Jerry's Dog Food, Inc. is a dog food wholesaler located in Greenwich, Connecticut. Selected financial statement values for Jerry's are shown in the table below. What is the degree of operating leverage for Jerry's given the change in revenues from Year 1 to Year 2? 

Jerry's Dog Food, Inc.
Year 1Year 2
Revenues$170,000$185,000
Cost of Goods Sold140,000148,000
SG&A10,00011,000
Depreciation2,0005,500
EBIT18,00020,500

◦ 3.40
◦ 1.57
◦ 0.11
◦ 1.00
◦ 0.85


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Marked as best answer by Wadzanai on Apr 25, 2021

Benayers

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Wadzanai

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Reply 2 on: Apr 25, 2021
Excellent


mcabuhat

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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