Mitzel Corporation has provided its contribution format income statement for May.
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 an 18% increase in sales.

Question

Mitzel Corporation has provided its contribution format income statement for May. 
 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 an 18% increase in sales.

Quizplus · Accepted Answer

The Answer of Mitzel Corporation has provided its contribution format income statement for May. 
 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 an 18% increase in sales.

Mitzel Corporation Has Provided Its Contribution Format Income Statement for May