What is the operating leverage for these financial accounting question? Greenfield Sportswear Ltd. reported the following financial information for theyear: Sales: $500,000 Variable Costs: 65% of sales Operating Income:$70,000. What is Greenfield Sportswear Ltd.'s operating leverage?a) 2.857b) 4.286c) 3.571d) 5.000

Step 1: Define Operating LeverageOperating Leverage measures how a company's operating income is…

Answered: Greenfield Sportswear Ltd. reported the…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

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Greenfield Sportswear Ltd. reported the following financial information for the year: Sales: $500,000 Variable Costs: 65% of sales Operating Income: $70,000. What is Greenfield Sportswear Ltd.'s operating leverage? a) 2.857 b) 4.286 c) 3.571 d) 5.000