Homework Help is Here – Start Your Trial Now!
Business
Accounting
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,...
See similar textbooks
icon
Related questions
Question

What is the degree of opereting leverage??? General accounting

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
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer