The company”s degree of operating leverage is closest to 1 answer below »
A manufacturer of cedar shingles has supplied the following data:
Bundles of cedar shakes produced and sold
280,000
Sales revenue
$2,072,000
Variable manufacturing expense
$1,134,000
Fixed manufacturing expense
$436,000
Variable selling and administrative expense
$238,000
Fixed selling and administrative expense
$164,000
Net operating income
$100,000
The company”s degree of operating leverage is closest to:
A) 2.80
B) 7.00
C) 2.29
D) 20.72