If sales are.....accounting question If sales are $400,000, variable costs are 75% of sales,and operating income is $50,000, what is the operatingleverage?a. Ob. 1.25c. 2.2d. 2

Step 1: Define Operating LeverageOperating leverage determines the percentage change in the…

Answered: If sales are $400,000, variable costs…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If sales are $400,000, variable costs are 75% of sales, and operating income is $50,000, what is the operating leverage? a. O b. 1.25 c. 2.2 d. 2