Junior Bodway, Inc., has provided the following budgeted data: At the budgeted sales level of 10,000 units, what is the company's degree of operating leverage?

Name: Junior Bodway, Inc., has provided the following budgeted data: At the budgeted sales level of 10,000 units, what is the company's degree of operating leverage?
Brand: Quizplus
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Question

Junior Bodway, Inc., has provided the following budgeted data:  At the budgeted sales level of 10,000 units, what is the company's degree of operating leverage?

Quizplus · Accepted Answer

11eacbfc_c785_e79e_8ffe_abddcd70ad39_TB7552_00 Degree of operating leverage = Contribution margin ÷ Net operating income
= $200,000 ÷ $20,000 = 10.0