Bristo Corporation has sales of 1,440 units at $50 per unit. Variable expenses are 25% of the selling price. If total fixed expenses are $42,000, the degree of operating leverage is: O 1.50 O 1.67 O 4.50 6.00
Bristo Corporation has sales of 1,440 units at $50 per unit. Variable expenses are 25% of the selling price. If total fixed expenses are $42,000, the degree of operating leverage is: O 1.50 O 1.67 O 4.50 6.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bristo Corporation has sales of 1,440 units at $50 per unit. Variable expenses are 25% of the selling price. If total fixed expenses
are $42,000, the degree of operating leverage is:
O 1.50
O 1.67
O 4.50
O 6.00
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