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Question 8 Vaughn Companys degree of operating leverage is 2.80. Cullumber Corporations degree of operating leverage is 17.36. Cullumbers earnings would go up (or down) byas much as Vaughns with an equal increase (or decrease) in sales. Ча 1/6.20 times 2.80 times 6.20 times 17.36 times

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Answer #1

Answer is 6.20 times.

Explanation:

Vaughn Company's degree of operating leverage = 2.8

Cullumbers corporation's degree of operating leverage = 17.36

Equal increase or decarese in sales = 17.36/2.8 = 6.2

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