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Ironclad Tools Ltd. had the following income statement for the most recent period: Account Sales Variable Costs Amount ($) 75,000 45,000 Contribution Margin 30,000 Fixed Costs Net Income 15,000 15,000 What is Ironclad Tools Ltd.'s operating leverage? a. 2 b. 1.5 c. 2.5 d. 3

Ironclad Tools Ltd. had the following income statement for the most recent period: Account Sales Variable Costs Amount ($) 75,000 45,000 Contribution Margin 30,000 Fixed Costs Net Income 15,000 15,000 What is Ironclad Tools Ltd.'s operating leverage? a. 2 b. 1.5 c. 2.5 d. 3

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 $13,700 for the current month,...
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Ironclad Tools Ltd. had the following income statement for the most recent period: Account Sales Variable Costs Amount ($) 75,000 45,000 Contribution Margin 30,000 Fixed Costs Net Income 15,000 15,000 What is Ironclad Tools Ltd.'s operating leverage? a. 2 b. 1.5 c. 2.5 d. 3
Transcribed Image Text:Ironclad Tools Ltd. had the following income statement for the most recent period: Account Sales Variable Costs Amount ($) 75,000 45,000 Contribution Margin 30,000 Fixed Costs Net Income 15,000 15,000 What is Ironclad Tools Ltd.'s operating leverage? a. 2 b. 1.5 c. 2.5 d. 3
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