Green company. ...I need questions answers Green Company's variable expenses are 75% of sales. At asales level of $400,000, the company's degree of operatingleverage is 8. At this sales level, fixed expenses are:A. $100,000B. $50,000C. $87,500D. $75,000

Step 1: Operating LeverageOperating leverage can be defined as the employment of an asset with a…

Answered: Green Company's variable expenses are…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Green Company's variable expenses are 75% of sales. At a sales level of $400,000, the company's degree of operating leverage is 8. At this sales level, fixed expenses are: A. $100,000 B. $50,000 C. $87,500 D. $75,000