A company has sales of $600,000, variable costs are 70% of sales, and operating income is $75,000. Calculate the operating leverage.
A company has sales of $600,000, variable costs are 70% of sales, and operating income is $75,000. Calculate the operating leverage.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...
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Transcribed Image Text:A company has sales of $600,000, variable costs are 70%
of sales, and operating income is $75,000. Calculate the
operating leverage.
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