Sh11Please help me What is Acme's operating leverage for 2019?A/ Acme, Inc. sells only one type of product. And it produced and sold 5,000 units ofthat product last year. Its financial results for the previous year were as follows:SalesLess variable costsContribution marginLess fixed costsNet income$ 75,000(24,000)51,000(12,000)$ 39,000

Degree of operating leverage :— It is calculated by dividing contribution margin by net income.…

Answered: Acme, Inc. sells only one type of…

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, Inc. sells only one type of product. And it produced and sold 5,000 units of that product last year. Its financial results for the previous year were as follows: Sales Less variable costs Contribution margin Less fixed costs Net income $ 75,000 (24,000) 51,000 (12,000) $ 39,000