Question

X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be:

Answer 1

4

Step-by-step explanation:

Note: The complete question is attached as picture below

Degree of Operating Leverage = Contribution/Operating Income

Degree of Operating Leverage = $48000 / $12000

Degree of Operating Leverage = 4

So. X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be 4