Bargain Company's contribution margin ratio is 15%. If the degree of operating leverage is 12 at theS150,000 sales level, operating profit at the $150,000 sales level must equal?

Formula: Contribution margin amount = Sales amount x Contribution margin ratio

Answered: Bargain Company's contribution margin…

Bargain Company's contribution margin ratio is 15%. If the degree of operating leverage is 12 at the $150,000 sales level, operating profit at the $150,000 sales level must equal?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 22MC: If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month,...

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Bargain Company's contribution margin ratio is 15%. If the degree of operating leverage is 12 at the
S150,000 sales level, operating profit at the $150,000 sales level must equal?

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