Butremovic 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 an 8% increase in sales.

Question

Butremovic 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 an 8% increase in sales.

Quizplus · Accepted Answer

The Answer of Butremovic 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 an 8% increase in sales.

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