Elmira's Environmental Consulting Service LLP had the following operating results last month: Service revenues amounted to $50,000, variable costs were $24,000, and fixed costs were $10,000 for the month. Based on this information, compute the following amounts:
a. Contribution margin (total and ratio)
b. Operating income
c. Degree of operation leverage (Round to 3 decimal places)
d. Break-even point in dollars (Round to nearest whole dollar)

Question

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The Answer of Elmira's Environmental Consulting Service LLP had the following operating results last month: Service revenues amounted to $50,000, variable costs were $24,000, and fixed costs were $10,000 for the month. Based on this information, compute the following amounts:
a. Contribution margin (total and ratio)
b. Operating income
c. Degree of operation leverage (Round to 3 decimal places)
d. Break-even point in dollars (Round to nearest whole dollar)

Elmira's Environmental Consulting Service LLP Had the Following Operating Results