If the contribution margin is $72000 and the operating income is $12000, then th

Question

If the contribution margin is $72000 and the operating income is $12000, then the degree of operating leverage would be

Options:

A . 8

B . 7

C . 6

D . 5

Answer: Option C
Answer: (c).6

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More Questions on This Topic :

Question 1. If the fixed cost is $15000 and the breakeven revenue is $45000 then the contribution margin will be....

Question 2. If the breakeven revenue is $360000 and the revenue per bundle is $12000, then the number of bundles to be sold to break....number of bundles to be sold to breakeven can be

Question 3. If the budgeted revenue is $20000 and the breakeven revenue is $15000, then the margin of safety will be....

Question 4. The graph, which shows the change in sold quantity and its effect on operating income is called....

Question 5. If the total units of product A, B and C are as 200,300 and 400 respectively then the sales mix would be....

Question 6. The contribution margin is divided to operate income to calculate....

Question 7. If the margin of safety is $35000 and the budgeted revenue is $80000, then the margin of safety in percentage will be....

Question 8. An effect of fixed cost to change in operating income is classified as....

Question 9. If the gross margin is $6000 and the total revenue is $26000, then the gross margin percentage will be....

Question 10. The target operating income is multiplied to tax rate and then subtracted from target operating income to calculate....

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