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Reference: 08-01
the Following Is Addison Corporation's Contribution Format Income

Question 27

Multiple Choice

Reference: 08-01
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 Net income $120,000\begin{array} { | l | c | } \hline \text { Sales } & \$ 1,000,000 \\\hline \text { Less variable expenses } & 700,000 \\\hline \text { Contribution margin } & 300,000 \\\hline \text { Less fixed expenses } & 180,000 \\\hline \text { Net income } & \$ 120,000 \\\hline\end{array} The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.
-What is the company's degree of operating leverage


A) 0.12.
B) 2.50.
C) 3.30.
D) 0.40.

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