Lakeshore Apparel Inc. reported the following financial information for the year: Sales: $600,000 • Variable Costs: 70% of sales • Operating Income: $90,000 What is Lakeshore Apparel Inc.'s operating leverage? a) 4.222 b) 3.000 c) 2.857 d) 2.000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Please need answer the financial accounting question

Lakeshore Apparel Inc. reported the following financial
information for the year:
Sales: $600,000
•
Variable Costs: 70% of sales
•
Operating Income: $90,000
What is Lakeshore Apparel Inc.'s operating leverage?
a) 4.222
b) 3.000
c) 2.857
d) 2.000
Transcribed Image Text:Lakeshore Apparel Inc. reported the following financial information for the year: Sales: $600,000 • Variable Costs: 70% of sales • Operating Income: $90,000 What is Lakeshore Apparel Inc.'s operating leverage? a) 4.222 b) 3.000 c) 2.857 d) 2.000
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