The company”s degree of operating leverage is closest to 2 answers below »
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