-Refer to Trident Food Corporation.What is the degree of operating leverage for Trident Foods?
A) 2.78
B) 10.71
C) 3.86
D) 3.00
E) 4.00

Name: -Refer to Trident Food Corporation.What is the degree of operating leverage for Trident Foods? A) 2.78 B) 10.71 C) 3.86 D) 3.00 E) 4.00
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Question

-Refer to Trident Food Corporation.What is the degree of operating leverage for Trident Foods?
A) 2.78 
B) 10.71 
C) 3.86 
D) 3.00 
E) 4.00

Quizplus · Accepted Answer

Degree of operating leverage = Contribution margin / Net income= (Sales - Variable costs) / (Sales - Variable costs - Fixed costs)= (100,000 - 60,000) / (100,000 - 60,000 - 20,000)= 40,000 / 20,000= 2.00