Langin Corporation has provided its contribution format income statement for June.
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 14% increase in sales.

Question

Langin Corporation has provided its contribution format income statement for June.  
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 14% increase in sales.

Quizplus · Accepted Answer

The Answer of Langin Corporation has provided its contribution format income statement for June.  
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 14% increase in sales.

Langin Corporation Has Provided Its Contribution Format Income Statement for June