Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 3, Problem 23MC
If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage?
- 0.21
- 1.21
- 2.4
- 5.7
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A firm’s contribution margin ratio is 18.4%. If the degree of operating leverage is 15.6 at the $223.1k sales level. Given this information, calculate the firm’s net operating income.
Your Corporation's fixed monthly expenses are $18,500 and its contribution margin ratio is 62%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $62,000?
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Chapter 3 Solutions
Principles of Accounting Volume 2
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