Morse Company reports total contribution margin of $48,000 and pretax net income of $12,000 for the current month.The degree of operating leverage is:
A)4.0
B)0.25
C)1.25
D)2.5
E)250%

Name: Morse Company reports total contribution margin of $48,000 and pretax net income of $12,000 for the current month.The degree of operating leverage is: A)4.0 B)0.25 C)1.25 D)2.5 E)250%
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The degree of operating leverage is calculated as Contribution Margin / Net Income, which is $48,000 / $12,000 = 4.0.

Morse Company Reports Total Contribution Margin of $48,000 and Pretax