Beemer's sales are $400,000, variable costs are 75% of sales, and operating income is $50,000. What is the operating leverage?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
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Beemer 's sales are solved this general accounting question

Beemer's sales are $400,000, variable costs are 75% of
sales, and operating income is $50,000. What is the
operating leverage?
Transcribed Image Text:Beemer's sales are $400,000, variable costs are 75% of sales, and operating income is $50,000. What is the operating leverage?
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