What is the company degree of operating leverage

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Reference no: EM132671726

Question - The following is Jordon Manufacturing's contribution format income statement for last month:

The company has no beginning or ending inventories and produced and sold 10,000 units during the month.

Required -

a) What is the company's contribution margin ratio?

b) What is the company's break-even in units?

c) If sales increase by 100 units, by how much should operating income increase?

d) How many units would the company have to sell to attain target operating income of $225,000?

e) What is the company's margin of safety in dollars?

f) What is the company's degree of operating leverage?

Reference no: EM132671726

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