What is the operating leverage? Bucket Corporation had the following income statement:Sales$50,000Less: Variable costs $28,000Contribution margin $22,000Less: Fixed costs$16,000Net income$6,000Bucket's operating leverage isa. 0.333b. 2c. 3.667d. 2.333

Step 1: Define Operating LeverageOperating leverage is a management accounting term that relates to…

Answered: Bucket Corporation had the following…

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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genow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Lo... r Operating Leverage Teague Co. reports the following data: Sales Variable costs Contribution margin Fixed costs $480,000 264,000 $216,000 175,200 $40,800 Income from operations Determine Teague Co.'s operating leverage. Round your answer to one decimal place.
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Bucket Corporation had the following income statement: Sales $50,000 Less: Variable costs $28,000 Contribution margin $22,000 Less: Fixed costs $16,000 Net income $6,000 Bucket's operating leverage is a. 0.333 b. 2 c. 3.667 d. 2.333