Addison Accounting LLP has the following financial information for its two primary business lines:
a. What is Addison's current degree of operating leverage (DOL)? (Round to 4 decimal places.
b. What is the contribution margin ratio for Addison Accounting LLP? (Hint: Compute the contribution margin ratio for the company (total). Round to 2 decimal places)
c. If the sales mix holds, and Addison management targets operating profit of $2,000,000, what level of total service revenue will be required?

Question

Addison Accounting LLP has the following financial information for its two primary business lines:  
a. What is Addison's current degree of operating leverage (DOL)? (Round to 4 decimal places.
b. What is the contribution margin ratio for Addison Accounting LLP? (Hint: Compute the contribution margin ratio for the company (total). Round to 2 decimal places)
c. If the sales mix holds, and Addison management targets operating profit of $2,000,000, what level of total service revenue will be required?

Quizplus · Accepted Answer

The Answer of Addison Accounting LLP has the following financial information for its two primary business lines:  
a. What is Addison's current degree of operating leverage (DOL)? (Round to 4 decimal places.
b. What is the contribution margin ratio for Addison Accounting LLP? (Hint: Compute the contribution margin ratio for the company (total). Round to 2 decimal places)
c. If the sales mix holds, and Addison management targets operating profit of $2,000,000, what level of total service revenue will be required?

Addison Accounting LLP Has the Following Financial Information for Its