What is the degree of operating leverage? Kendall Company has sales of 2,375 units at $40 a unit.Variable expenses are 20% of the selling price. If totalfixed expenses are $66,000, what is the degree ofoperating leverage?a. 7.60b. 1.90c. 2.07d. 9.50

Step 1: Define Operating LeverageIn management accounting, the operating leverage refers to the…

Answered: Kendall Company has sales of 2,375…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month, what is their degree of operating leverage? A. 0.18 B. 1.18 C. 2.4 D. 4.7
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Acme Company has sales of 2,375 units at $40 per unit. Variable expenses are 20% of the selling price. If total fixed expenses are $66,000, the degree of operating leverage is: O 1.90 O 9.50 O 2.07 O 7.60

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Kendall Company has sales of 2,375 units at $40 a unit. Variable expenses are 20% of the selling price. If total fixed expenses are $66,000, what is the degree of operating leverage? a. 7.60 b. 1.90 c. 2.07 d. 9.50