If a company had total sales of $1,020, total variable costs of $567, total fixed costs...

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If a company had total sales of $1,020, total variable costs of $567, total fixed costs...

If a company had total sales of $1,020, total variable costs of $567, total fixed costs of $340, and total interest expenses of $198, then the Degree of Operating Leverage would be __.__. Round your answer to 2 decimal places.

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Answer 1

Answer #1

Degree of Operating Leverage = Contribution margin / EBIT

Degree of Operating Leverage = ($1,020 - $567) / ($1,020 - $567 - $340)

Degree of Operating Leverage = $453 / $113

Degree of Operating Leverage = 4.01

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Answer 2

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If a company had total sales of $1,020, total variable costs of $567, total fixed costs...

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