Sales (30,000units) P 150,000 Variable costs 100,800 Contribution margin P 49, 200 Fixed manufacturing costs 24,000 Operating income P 25,200 Interest 18,000 Earnings before taxes P 7,200 Taxes (at 31%) 2,160 Net income P 5,040 Shares outstanding 600 The degree of operating leverage is a. 1.58x b. 1.95x c. 3.50x d. 1.40x
Sales (30,000units) P 150,000
Variable costs 100,800
Contribution margin P 49, 200
Fixed
Operating income P 25,200
Interest 18,000
Earnings before taxes P 7,200
Taxes (at 31%) 2,160
Net income P 5,040
Shares outstanding 600
The degree of operating leverage is
a. 1.58x
b. 1.95x
c. 3.50x
d. 1.40x
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