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3 (27) A company reported the following data: Sales Variable operating costs Contribution margin Fixed operating costs Operating income $300,000 ($120,000) $180,000 ($100,000) $80,000 What is this company's degree of operating leverage using these data? 1.25 O 1.50 2.25 O 3.75

3 (27) A company reported the following data: Sales Variable operating costs Contribution margin Fixed operating costs Operating income $300,000 ($120,000) $180,000 ($100,000) $80,000 What is this company's degree of operating leverage using these data? 1.25 O 1.50 2.25 O 3.75

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3 (27) A company reported the following data: Sales Variable operating costs Contribution margin Fixed operating costs Operating income $300,000 ($120,000) $180,000 ($100,000) $80,000 What is this company's degree of operating leverage using these data? 1.25 O 1.50 2.25 O 3.75
Transcribed Image Text:3 (27) A company reported the following data: Sales Variable operating costs Contribution margin Fixed operating costs Operating income $300,000 ($120,000) $180,000 ($100,000) $80,000 What is this company's degree of operating leverage using these data? 1.25 O 1.50 2.25 O 3.75
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