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The Following Is Last Month's Contribution Format Income Statement What Is the Company's Degree of Operating Leverage?
A)0

Question 102

Multiple Choice

The following is last month's contribution format income statement:  Sales (8,000 units)  $800,000 Less variable expenses 500,000 Contribution margin 300,000 Less fixed expenses 200,000 Net income $100,000\begin{array} { | l | c | } \hline \text { Sales (8,000 units) } & \$ 800,000 \\\hline \text { Less variable expenses } & 500,000 \\\hline \text { Contribution margin } & 300,000 \\\hline \text { Less fixed expenses } & 200,000 \\\hline \text { Net income } & \$ 100,000 \\\hline\end{array} What is the company's degree of operating leverage?


A) 0.333.
B) 3.000.
C) 0.125.
D) 8.000.

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