Hello tutor Please give me Solution Brown Corporation has sales of 1,000units at $50 per unit. Variable expensesare 40% of the selling price. If total fixedexpenses are $20,000, the degree ofoperating leverage is:A. 5.00B. 2.00C. 2.17D. 3.00

Step 1: Introduction to the Operating LeverageOperating leverage determines the percentage change in…

Answered: Brown Corporation has sales of 1,000…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 22MC: If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month,...

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From the following information, calculate Operating Leverage, Financial Leverageand Combined Leverage :Particulars Amount (Rs.)Sales 9,00,000EBIT 2,40,000EBT 1,25,000Tax Rate 35%Variable Cost 60% of sales

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Brown Corporation has sales of 1,000 units at $50 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $20,000, the degree of operating leverage is: A. 5.00 B. 2.00 C. 2.17 D. 3.00