Horizon Industries Ltd. had the following income statement for the most recent period: Account Sales Variable Costs Amount ($) 75,000 45,000 Contribution Margin 30,000 Fixed Costs Net Income 20,000 10,000 What is Horizon Industries' operating leverage? a. 1.5 b. 2.25 c. 3 d. 1.75
Horizon Industries Ltd. had the following income statement for the most recent period: Account Sales Variable Costs Amount ($) 75,000 45,000 Contribution Margin 30,000 Fixed Costs Net Income 20,000 10,000 What is Horizon Industries' operating leverage? a. 1.5 b. 2.25 c. 3 d. 1.75
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.5.1MBA
Question
100%
What is horizon industries opereting leverage? General accounting
Transcribed Image Text:Horizon Industries Ltd. had the following income statement for the most recent period:
Account
Sales
Variable Costs
Amount ($)
75,000
45,000
Contribution Margin 30,000
Fixed Costs
Net Income
20,000
10,000
What is Horizon Industries' operating leverage?
a. 1.5
b. 2.25
c. 3
d. 1.75
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