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If sales are $600,000, variable costs are 70% of sales, and operating income is $50,000, what is the operating leverage? a. 2.800 b. 3.600 c. 4.200 d. 5.000

If sales are $600,000, variable costs are 70% of sales, and operating income is $50,000, what is the operating leverage? a. 2.800 b. 3.600 c. 4.200 d. 5.000

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,...
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What is the operating leverage on these general accounting question?

If sales are $600,000, variable costs are 70% of sales, and operating income is $50,000, what is the operating leverage? a. 2.800 b. 3.600 c. 4.200 d. 5.000
Transcribed Image Text:If sales are $600,000, variable costs are 70% of sales, and operating income is $50,000, what is the operating leverage? a. 2.800 b. 3.600 c. 4.200 d. 5.000
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