The company”s degree of operating leverage
A manufacturer of tiling grout has supplied the following data:
|
Kilograms produced and sold |
300,000 |
|
Sales revenue |
$1,950,000 |
|
Variable manufacturing expense |
$960,000 |
|
Fixed manufacturing expense |
$266,000 |
|
Variable selling and administrative expense |
$360,000 |
|
Fixed selling and administrative expense |
$232,000 |
|
Net operating income |
$132,000 |
The company”s degree of operating leverage is closest to:
A) 14.77
B) 2.65
C) 4.77
D) 2.27
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