Julius Corporation Had the Following Income Statement for 2018 What Is the Degree of Operating Leverage for Julius Corporation

question 101

Multiple Choice

Julius Corporation had the following income statement for 2018: $$\begin{array} { l r } \text { Sales } & \$ 80,000 \\\text { Variable expenses } & 56,000 \\\text { Contribution margin } & \$ 24,000 \\\text { Fixed expenses } & 16,000 \\\text { Operating income } & \$ 8,000\end{array}$$ What is the degree of operating leverage for Julius Corporation for 2018?

• A)3.000
• B)2.000
• C)0.333
• D)2.333

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Definitions:

Conceptual Skills

The ability to understand complex ideas and relationships, facilitating effective problem-solving and strategic planning.

Human Skills

The ability to work well with others, often referred to as interpersonal skills, crucial for effective leadership and teamwork.

Organization

A structured group of people working together to achieve common goals through a division of labor and a hierarchy of authority.

Chief Operating Officer

A senior executive responsible for managing the day-to-day administrative and operational functions of a company.