cost accounting Evergreen Co. earns a profit of $60,000, with fixed costs of $180,000 and sales revenueof $950,000.What is the company's operating leverage?

Step 1: Definition of Operating LeverageOperating leverage measures how a company's operating income…

Answered: Evergreen Co. earns a profit of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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Singh Co. reports a contribution margin of $960,000 and fixed costs of $720,000. (1) Compute the company’s degree of operating leverage. (2) If sales increase by 15%, what amount of income will Singh Co. expect?
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Evergreen Co. earns a profit of $60,000, with fixed costs of $180,000 and sales revenue of $950,000. What is the company's operating leverage?