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General Accounting 3.25.74-If sales are $420,000, variable costs are 72% of sales, and operating income is $40,000, what is the operating leverage? (a) 3.000 (b) 2.940 (c) 3.875 (d) 2.500

General Accounting 3.25.74-If sales are $420,000, variable costs are 72% of sales, and operating income is $40,000, what is the operating leverage? (a) 3.000 (b) 2.940 (c) 3.875 (d) 2.500

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
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...
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General Accounting 3.25.74-If sales are $420,000, variable costs are 72% of sales, and operating income is $40,000, what is the operating leverage? (a) 3.000 (b) 2.940 (c) 3.875 (d) 2.500

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