Mcquage Corporation has provided its contribution format income statement for July.
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 19% increase in sales.

Question

Mcquage Corporation has provided its contribution format income statement for July.
  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 19% increase in sales.

Quizplus · Accepted Answer

The Answer of Mcquage Corporation has provided its contribution format income statement for July.
  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 19% increase in sales.

Mcquage Corporation Has Provided Its Contribution Format Income Statement for July