The sales and cost data for two companies in the transportation industry are as follows: Sales Variable costs Contribution margin Fixed costs Operating income (πB) X Company Amount Percent $156,000 100.00 93,600 60.00 40.00 62,400 34,350 $ 28,050 Y Company Amount $156,000 46,800 109, 200 70,400 $ 38,800 Percent 100.00 30.00 70.00 X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...
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The sales and cost data for two companies in the transportation industry are as follows:
X Company
Amount
$156,000
100.00
93,600
60.00
DI
40.00
62,400
34,350
Sales
Variable costs
Contribution margin
Fixed costs
Operating income
(πB)
$ 28,050
Percent
Y Company
Amount
$156,000
46,800
109, 200
70,400
$ 38,800
Percent
100.00
30.00
70.00
X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be:
Transcribed Image Text:The sales and cost data for two companies in the transportation industry are as follows: X Company Amount $156,000 100.00 93,600 60.00 DI 40.00 62,400 34,350 Sales Variable costs Contribution margin Fixed costs Operating income (πB) $ 28,050 Percent Y Company Amount $156,000 46,800 109, 200 70,400 $ 38,800 Percent 100.00 30.00 70.00 X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be:
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