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If sales are $450,000, variable costs are 75% of sales, and operating income is $30,000, what is the operating leverage?

If sales are $450,000, variable costs are 75% of sales, and operating income is $30,000, what is the operating leverage?

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 $450,000, variable costs are 75% of sales, and operating income is $30,000, what is the operating leverage?
Transcribed Image Text:If sales are $450,000, variable costs are 75% of sales, and operating income is $30,000, what is the operating leverage?
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