Eickhoff 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 1% increase in sales.

Question

Eickhoff 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 1% increase in sales.

Quizplus · Accepted Answer

The Answer of Eickhoff 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 1% increase in sales.

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