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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

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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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
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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