Lubke Corporation's contribution format income statement for the most recent month follows: 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 3% increase in sales.

Question

Lubke Corporation's contribution format income statement for the most recent month follows:  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 3% increase in sales.

Quizplus · Accepted Answer

The Answer of Lubke Corporation's contribution format income statement for the most recent month follows:  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 3% increase in sales.

Lubke Corporation's Contribution Format Income Statement for the Most Recent