Mitzel Corporation has provided its contribution format income statement for May. 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 an 18% increase in sales.

Question

Mitzel Corporation has provided its contribution format income statement for May.  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 an 18% increase in sales.

Quizplus · Accepted Answer

The Answer of Mitzel Corporation has provided its contribution format income statement for May.  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 an 18% increase in sales.

Mitzel Corporation Has Provided Its Contribution Format Income Statement for May