Homework Help is Here – Start Your Trial Now!
Business
Accounting
ABC Corp has fixed costs of $240,000 and a profit of $180,000. What is ABC Corp's degree of operating leverage? A) 1.75 B) 2.33 C) 2.75 D) 3.00

ABC Corp has fixed costs of $240,000 and a profit of $180,000. What is ABC Corp's degree of operating leverage? A) 1.75 B) 2.33 C) 2.75 D) 3.00

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter16: Capital Structure Decisions
Section: Chapter Questions
Problem 2MC
See similar textbooks
icon
Related questions
Question

Need help with this accounting questions

ABC Corp has fixed costs of $240,000 and a profit of $180,000. What is ABC Corp's degree of operating leverage? A) 1.75 B) 2.33 C) 2.75 D) 3.00
Transcribed Image Text:ABC Corp has fixed costs of $240,000 and a profit of $180,000. What is ABC Corp's degree of operating leverage? A) 1.75 B) 2.33 C) 2.75 D) 3.00
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SEE MORE TEXTBOOKS