In the most recent month,Eckstrom Corporation's total contribution margin was $208,000 and its net operating income $39,400.
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 1% increase in sales.

Question

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The Answer of In the most recent month,Eckstrom Corporation's total contribution margin was $208,000 and its net operating income $39,400.
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 1% increase in sales.

In the Most Recent Month,Eckstrom Corporation's Total Contribution Margin Was