Acme Company has sales of 2,375 units at $40 per unit. Variableexpenses are 20% of the selling price. If total fixed expenses are$66,000, the degree of operating leverage is:O 1.90O 9.50O 2.07O 7.60

Degree of operating leverage is calculated by dividing the contribution margin by net operating…

Answered: Acme Company has sales of 2,375 units…

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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Acme Company has sales of 2,375 units at $40 per unit. Variable expenses are 20% of the selling price. If total fixed expenses are $66,000, the degree of operating leverage is: O 1.90 O 9.50 O 2.07 O 7.60