what is the operation leverage? accounting question A company reports the following financial data:• Sales: $500,000• Variable costs: 65% of sales•Operating income: $70,000What is the operating leverage?

Step 1: Definition of Operating LeverageOperating leverage measures how sensitive a company's…

Answered: A company reports the following…

Principles of Accounting Volume 2

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ISBN:9781947172609

Author:OpenStax

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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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If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month, what is their degree of operating leverage? A. 0.18 B. 1.18 C. 2.4 D. 4.7
Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested assets of 180,000, and sales of 720,000. Use the DuPont formula to compute the return on investment and show (A) the profit margin, (B) the investment turnover, and (C) the return on investment.
Calculate the Operating Leverage for a business given the following data: Sales = $300,000.00 Variable Costs = 75% of Sales Operating Income = $40,000.00 Group of answer choices a. 0 b. 7.500 c. 1.875 d. 1.333
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Operating Leverage Haywood Co. reports the following data: Sales $6,160,000 Variable costs (4,620,000) Contribution margin $1,540,000 Fixed costs (440,000) Operating income $1,100,000 Determine Haywood Co.’s operating leverage. Round your answer to one decimal place.
A company has an Investment opportunity with the following Information: $ 420,000 Sales Contribution margin ratio Fixed expenses Average operating assets 70% of sales $ 252,000 $ 350,000 The company's minimum requlred rate of return Is 10%. What Is the ROI related to this Investment opportunity? ROI

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A company reports the following financial data: • Sales: $500,000 • Variable costs: 65% of sales • Operating income: $70,000 What is the operating leverage?