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Operating leverage Westminster Co. reports the following data:

Operating leverage 

Westminster Co. reports the following data: 

 Sales 962,500  Variable costs 467,500

   Contribution margin 495,000  Fixed costs 165,000  Income from operations 330,000


Determine Westminster Co.'s operating leverage.

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Degree of operating Leverage... View the full answer

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operating leverage= % change in EBIT /% change in sales EBIT:... View the full answer

Sales $962,500 Variable cost : $467,500 Contribution $495,000 (-) fixed cost $165,000 Net operating profit... View the full answer

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