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Jimson Company has sales of 3,000 units at $70 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $54,000, the degree of operating leverage is: a) 1.75 b) 1.40 c) 2.10 d) 3.50

Jimson Company has sales of 3,000 units at $70 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $54,000, the degree of operating leverage is: a) 1.75 b) 1.40 c) 2.10 d) 3.50

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 11P
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Jimson Company has sales of 3,000 units at $70 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $54,000, the degree of operating leverage is: a) 1.75 b) 1.40 c) 2.10 d) 3.50
Transcribed Image Text:Jimson Company has sales of 3,000 units at $70 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $54,000, the degree of operating leverage is: a) 1.75 b) 1.40 c) 2.10 d) 3.50
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