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Bright Co. has annual revenue of $900,000, profit of $60,000, and fixed costs totaling $180,000. What is Bright Co.'s operating leverage?

Bright Co. has annual revenue of $900,000, profit of $60,000, and fixed costs totaling $180,000. What is Bright Co.'s operating leverage?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...
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What is Bright Co.'s operating leverage

Bright Co. has annual revenue of $900,000, profit of $60,000, and fixed costs totaling $180,000. What is Bright Co.'s operating leverage?
Transcribed Image Text:Bright Co. has annual revenue of $900,000, profit of $60,000, and fixed costs totaling $180,000. What is Bright Co.'s operating leverage?
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