Homework Help is Here – Start Your Trial Now!
Business
Accounting
If sales are $380,000, variable costs are 65% of sales, and operating income is $50,000, what is the operating leverage? a. 2.800 b. 3.440 c. 3.200 d. 4.000

If sales are $380,000, variable costs are 65% of sales, and operating income is $50,000, what is the operating leverage? a. 2.800 b. 3.440 c. 3.200 d. 4.000

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 operating leverage?

If sales are $380,000, variable costs are 65% of sales, and operating income is $50,000, what is the operating leverage? a. 2.800 b. 3.440 c. 3.200 d. 4.000
Transcribed Image Text:If sales are $380,000, variable costs are 65% of sales, and operating income is $50,000, what is the operating leverage? a. 2.800 b. 3.440 c. 3.200 d. 4.000
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer