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Given the following income statement for OR company for 20X4:                 Sales (30,000 units)                                                 P 600,000                 Less operating expenses:                 Variable                                          P 390,000                 Fixed                                               140,000                530,000              Net income                                                                   P 70,000   The company’s degree of operating leverage is a. 3 b. 2 c. 4.28 d. 8.57

Given the following income statement for OR company for 20X4:                 Sales (30,000 units)                                                 P 600,000                 Less operating expenses:                 Variable                                          P 390,000                 Fixed                                               140,000                530,000              Net income                                                                   P 70,000   The company’s degree of operating leverage is a. 3 b. 2 c. 4.28 d. 8.57

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Given the following income statement for OR company for 20X4:

                Sales (30,000 units)                                                 P 600,000

                Less operating expenses:

                Variable                                          P 390,000

                Fixed                                               140,000                530,000

             Net income                                                                   P 70,000

 

The company’s degree of operating leverage is

a. 3

b. 2

c. 4.28

d. 8.57

 

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