Compute degree of operating leverage

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Reference no: EM131211733

Company installs lawn sold in home yards. The company’s most recent monthly contribution format income statement with the selling price $100 per unit as follows: Sales ……….…………………. $ 240,000 Variable expenses …….…….. 96,000 Contribution margin …………. 144,000 Fixed expenses ……………… 114,000 Net operating income ……….. 30,000 Required: a. Compute BEP in units. b. Compute BEP in sales dollars. c. Compute Variable Expenses Ratio. d. Compute Margin of Safety (MoS) as percentage of its sales. e. Compute Degree of Operating Leverage (DOL).

Reference no: EM131211733

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