Freedom Rock Bicycle runs a guide service to some of Utah's national parks and scenic back country. Freedom Rock Bicycle has many pieces of equipment including four-wheel drive vehicles, side-by-side ATVs, and four-wheelers. Guests reserve day trips and even weeks of sight - seeing with Freedom Rock Bicycle. The company's costs and revenues for last year were as follows: Revenues: $4,500,000 Fixed expenses: 1,000,000 Variable expenses: 3,000,000 Based on these data, what is Freedom Rock Bicycle's margin of safety (in dollars) and degree of operating leverage?

Freedom Rock Bicycle runs a guide service to some of Utah's national parks and scenic back country. Freedom Rock Bicycle has many pieces of equipment including four-wheel drive vehicles, side-by-side ATVs, and four-wheelers. Guests reserve day trips and even weeks of sight - seeing with Freedom Rock Bicycle. The company's costs and revenues for last year were as follows: Revenues: $4,500,000 Fixed expenses: 1,000,000 Variable expenses: 3,000,000 Based on these data, what is Freedom Rock Bicycle's margin of safety (in dollars) and degree of operating leverage?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...

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