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HarborTech Corporation has sales of 2,000 units at $80 per unit. Variable expenses are 45% of the selling price. If total fixed expenses are $60,000, what is the degree of operating leverage? A. 4.00 B. 3.14 C. 2.85 D. 3.50

HarborTech Corporation has sales of 2,000 units at $80 per unit. Variable expenses are 45% of the selling price. If total fixed expenses are $60,000, what is the degree of operating leverage? A. 4.00 B. 3.14 C. 2.85 D. 3.50

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...
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What is the degree of opereting leverage???

HarborTech Corporation has sales of 2,000 units at $80 per unit. Variable expenses are 45% of the selling price. If total fixed expenses are $60,000, what is the degree of operating leverage? A. 4.00 B. 3.14 C. 2.85 D. 3.50
Transcribed Image Text:HarborTech Corporation has sales of 2,000 units at $80 per unit. Variable expenses are 45% of the selling price. If total fixed expenses are $60,000, what is the degree of operating leverage? A. 4.00 B. 3.14 C. 2.85 D. 3.50
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