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Greenfield Enterprises had the following income statement: Sales Description Amount $70,000 Less: Variable costs $40,000 Contribution margin $30,000 Less: Fixed costs Net income $18,000 $12,000 What is Greenfield's operating leverage? Options: a. 0.5 b. 2.5 c. 3.0 d. 4.0

Greenfield Enterprises had the following income statement: Sales Description Amount $70,000 Less: Variable costs $40,000 Contribution margin $30,000 Less: Fixed costs Net income $18,000 $12,000 What is Greenfield's operating leverage? Options: a. 0.5 b. 2.5 c. 3.0 d. 4.0

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.16E
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Greenfield Enterprises had the following income statement: Sales Description Amount $70,000 Less: Variable costs $40,000 Contribution margin $30,000 Less: Fixed costs Net income $18,000 $12,000 What is Greenfield's operating leverage? Options: a. 0.5 b. 2.5 c. 3.0 d. 4.0
Transcribed Image Text:Greenfield Enterprises had the following income statement: Sales Description Amount $70,000 Less: Variable costs $40,000 Contribution margin $30,000 Less: Fixed costs Net income $18,000 $12,000 What is Greenfield's operating leverage? Options: a. 0.5 b. 2.5 c. 3.0 d. 4.0
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