Carroll and Company sells a single product. Its annual revenue is 1200000 dollars and profit is 50000 dollars. Fixed costs amount to 250000 dollars. What is its operating leverage?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...
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Carroll and Company sells a single product. Its annual
revenue is 1200000 dollars and profit is 50000 dollars.
Fixed costs amount to 250000 dollars. What is its operating
leverage?
Transcribed Image Text:Carroll and Company sells a single product. Its annual revenue is 1200000 dollars and profit is 50000 dollars. Fixed costs amount to 250000 dollars. What is its operating leverage?
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