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Bucket Manufacturing Ltd. had the following income statement for the most recent period: Account Amount ($) Sales 60,000 Variable Costs 36,000 Contribution Margin 24,000 Fixed Costs 12,000 Net Income 12,000 What is Bucket Manufacturing's operating leverage? a. 2 b. 1.5 c. 2.5 d. 3

Bucket Manufacturing Ltd. had the following income statement for the most recent period: Account Amount ($) Sales 60,000 Variable Costs 36,000 Contribution Margin 24,000 Fixed Costs 12,000 Net Income 12,000 What is Bucket Manufacturing's operating leverage? a. 2 b. 1.5 c. 2.5 d. 3

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 16E
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What is bucket manufacturing 's operating leverage on these general accounting question?

Bucket Manufacturing Ltd. had the following income statement for the most recent period: Account Amount ($) Sales 60,000 Variable Costs 36,000 Contribution Margin 24,000 Fixed Costs 12,000 Net Income 12,000 What is Bucket Manufacturing's operating leverage? a. 2 b. 1.5 c. 2.5 d. 3
Transcribed Image Text:Bucket Manufacturing Ltd. had the following income statement for the most recent period: Account Amount ($) Sales 60,000 Variable Costs 36,000 Contribution Margin 24,000 Fixed Costs 12,000 Net Income 12,000 What is Bucket Manufacturing's operating leverage? a. 2 b. 1.5 c. 2.5 d. 3
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