Lydic Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range. The degree of operating leverage is closest to:

Name: Lydic Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range. The degree of operating leverage is closest to:
Brand: Quizplus
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Question

Lydic Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range.  The degree of operating leverage is closest to:

Quizplus · Accepted Answer

Degree of operating leverage = Contribution margin ÷ Net operating income
= $48,000 ÷ $9,600 = 5.0

Lydic Corporation Has Provided the Following Contribution Format Income Statement