Beemer's sales are $400,000, variable costs are 75% of sales, and income from operations is $50,000. The operating leverage is O a. 2.0 Ob. 7.5 O c. 0.0 O d. 2.5
Beemer's sales are $400,000, variable costs are 75% of sales, and income from operations is $50,000. The operating leverage is O a. 2.0 Ob. 7.5 O c. 0.0 O d. 2.5
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Beemer's sales are $400,000, variable costs are 75% of sales, and income from operations is $50,000. The operating leverage is
Oa 2.0
b. 7.5
O c. 0.0
Od. 2.5
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