Sebree Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (7,000 units)$280,000Variable expenses 168,000Contribution margin 112,000Fixed expenses 105,600Net operating income$6,400The degree of operating leverage is closest to:
A. 43.75
B. 17.50
C. 0.06
D. 0.02
Answer: B
You might also like to view...
There are many important reasons for diligent audit planning. If an audit firm wrongly skips the planning stage of an audit, what will be the effect relative to fraud detection?
a. The firm will not be able to apply GAAP to the financial statements. b. The firm will not adequately identify the types of fraud that may occur in the client company. c. The firm will not be able to perform direct tests of account balances. d. The firm will lack the competency and technical training necessary to complete the audit in accordance with GAAS.
The cash disbursement function is
a. part of accounts payable b. an independent accounting function c. a treasury function d. part of the general ledger department
When a merger takes place, the surviving corporation issues shares or pays fair consideration to the shareholders of the corporation that ceases to exist.
Answer the following statement true (T) or false (F)
Time value of money should be ignored in capital budgeting techniques to make accurate decisions
Indicate whether the statement is true or false