14
Part 14 of 15
Required information
(The following information applies to the questions displayed below.)
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the
relevant range of production is 500 units to 1,500 units):
Sales $ 60,000
Variable expenses 39,000
Contribution margin 21,000
Fixed expenses 14,700
Net operating income $ 6,300
14. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed, in other words, assume
that the total variable expenses are $14,700 and the total fixed expenses are $39,000. Under this scenario and assuming that total
sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.)
Answer is complete but not entirely correct.
Degree of operating leverage 1.33
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