If sales are $300,000, variable costs are 60% of sales, and operating income is $40,000, what is the operating leverage? a. 3.000 b. 7.500 c. 1.875 d. 4.500
If sales are $300,000, variable costs are 60% of sales, and operating income is $40,000, what is the operating leverage? a. 3.000 b. 7.500 c. 1.875 d. 4.500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
what is the operating leverage?
Transcribed Image Text:If sales are $300,000, variable costs
are 60% of sales, and operating
income is $40,000, what is the
operating leverage?
a. 3.000
b. 7.500
c. 1.875
d. 4.500
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