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Blue Ridge Inc. has the following Contribution Margin Income Statement: Unit Price Sales Variable Costs Contribution Margin Less Fixed Costs Total Income before Tax Total $500.00 $350.00 $150.00 At this level of activity, what is the leverage factor for Blue Ridge Inc.? A. 7.00 B. 5.40 C. 6.00 D. 6.75

Blue Ridge Inc. has the following Contribution Margin Income Statement: Unit Price Sales Variable Costs Contribution Margin Less Fixed Costs Total Income before Tax Total $500.00 $350.00 $150.00 At this level of activity, what is the leverage factor for Blue Ridge Inc.? A. 7.00 B. 5.40 C. 6.00 D. 6.75

FINANCIAL ACCOUNTING
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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What is the leverage fector for blue ridge Inc?? Accounting

Blue Ridge Inc. has the following Contribution Margin Income Statement: Unit Price Sales Variable Costs Contribution Margin Less Fixed Costs Total Income before Tax Total $500.00 $350.00 $150.00 At this level of activity, what is the leverage factor for Blue Ridge Inc.? A. 7.00 B. 5.40 C. 6.00 D. 6.75
Transcribed Image Text:Blue Ridge Inc. has the following Contribution Margin Income Statement: Unit Price Sales Variable Costs Contribution Margin Less Fixed Costs Total Income before Tax Total $500.00 $350.00 $150.00 At this level of activity, what is the leverage factor for Blue Ridge Inc.? A. 7.00 B. 5.40 C. 6.00 D. 6.75
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