The Following Is Last Month's Contribution Format Income Statement What Is the Company's Degree of Operating Leverage?
A) 0

question 66

Multiple Choice

The following is last month's contribution format income statement:
$\begin{array}{|l|r|}\hline \text { Sales }(8,000 \text { units) } & \$ 800,000 \\\hline \text { Less: variable expenses } & 500,000 \\\hline \text { Contribution margin } & 300,000 \\\hline \text { Less: fixed expenses } & 200,000 \\\hline \text { Operating income } & \$ 100,000 \\\hline\end{array}$
What is the company's degree of operating leverage?

• A) 0.125.
• B) 8.0.
• C) 3.0.
• D) 0.333.

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