Lubke Corporation's contribution format income statement for the most recent month follows:
Required: a. Compute the degree of operating leverage to two decimal places.b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 3% increase in sales volume.

Question

Lubke Corporation's contribution format income statement for the most recent month follows:
  Required: a. Compute the degree of operating leverage to two decimal places.b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 3% increase in sales volume.

Quizplus · Accepted Answer

The Answer of Lubke Corporation's contribution format income statement for the most recent month follows:
  Required: a. Compute the degree of operating leverage to two decimal places.b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 3% increase in sales volume.

Lubke Corporation's Contribution Format Income Statement for the Most Recent