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Robert Wilson Company
Below Is an Income Statement for Robert $400,000 \$ 400,000

Question 23

Multiple Choice

Robert Wilson Company
Below is an income statement for Robert Wilson Company:
Sales                                                                         $400,000 \$ 400,000
Variable costs                                                          (200,000) \underline{(200,000) }
Contribution margin                                                  $200,000
Fixed costs                                                            (125,000) \underline{(125,000) }
Profit before taxes                                                  $75,000\underline{\$75,000}


Refer to Robert Wilson Company.What is the company's degree of operating leverage (DOL) ?


A) 2.67
B) 3.2
C) 5.33
D) 10.67

Correct Answer:

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