Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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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 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
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Transcribed Image Text: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
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