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Maple Industries had the following income statement: Description Sales Amount ($) 120,000 Less: Variable Costs (72,000) Contribution Margin 48,000 Less: Fixed Costs (36,000) Net Income 12,000 Maple's operating leverage is: a. 3.000 b. 4.000 c. 3.333 d. 4.167 What is the correct answer?

Maple Industries had the following income statement: Description Sales Amount ($) 120,000 Less: Variable Costs (72,000) Contribution Margin 48,000 Less: Fixed Costs (36,000) Net Income 12,000 Maple's operating leverage is: a. 3.000 b. 4.000 c. 3.333 d. 4.167 What is the correct answer?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Maple Industries had the following income statement: Description Sales Amount ($) 120,000 Less: Variable Costs (72,000) Contribution Margin 48,000 Less: Fixed Costs (36,000) Net Income 12,000 Maple's operating leverage is: a. 3.000 b. 4.000 c. 3.333 d. 4.167 What is the correct answer?
Transcribed Image Text:Maple Industries had the following income statement: Description Sales Amount ($) 120,000 Less: Variable Costs (72,000) Contribution Margin 48,000 Less: Fixed Costs (36,000) Net Income 12,000 Maple's operating leverage is: a. 3.000 b. 4.000 c. 3.333 d. 4.167 What is the correct answer?
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