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What is the company degree of operating leverage

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Question - The following is Addison Corporation's contribution format income statement for last month:

Sales $1,000,000

Less: variable expenses 700,000

Contribution margin 300,000

Less: fixed expenses 180,000

Operating income $120,000

The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.

Required - What is the company's degree of operating leverage?

Reference no: EM133116409

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