What is the degree of operating leverage for July?
A) The same as that for June.
B) Higher than that for June.
C) Lower than that for June.
D) Not determinable.June CM = 8,000 * 10.30 = 82,400 DOL = 82,400/(82,400 - 80,000)= 34.33.

Question

Quizplus · Accepted Answer

The degree of operating leverage (DOL) is calculated by dividing the percentage change in operating income by the percentage change in sales. As the information for July's sales and operating income is not given, we cannot determine the DOL for July. Therefore, it is not possible to determine if the DOL is higher or lower than that for June.

What Is the Degree of Operating Leverage for July