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Johnson Industries has fixed costs of $240,000 and profit of $160,000. What is its degree of operating leverage? a. 0.67 b. 1.5 c. 2.5 d. 3.25

Johnson Industries has fixed costs of $240,000 and profit of $160,000. What is its degree of operating leverage? a. 0.67 b. 1.5 c. 2.5 d. 3.25

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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Johnson Industries has fixed costs of $240,000 and profit of $160,000. What is its degree of operating leverage? a. 0.67 b. 1.5 c. 2.5 d. 3.25
Transcribed Image Text:Johnson Industries has fixed costs of $240,000 and profit of $160,000. What is its degree of operating leverage? a. 0.67 b. 1.5 c. 2.5 d. 3.25
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