Matt Corporation reports the following data: Sales Variable Costs Fixed Costs $425,000 $255,000 Contribution Margin $170,000 $85,000 Income from Operations $85,000 Determine Matt Corporation's operating leverage.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...
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Determine matt corporation operating leverage

Matt Corporation reports the following data:
Sales
Variable Costs
Fixed Costs
$425,000
$255,000
Contribution Margin $170,000
$85,000
Income from Operations $85,000
Determine Matt Corporation's operating leverage.
Transcribed Image Text:Matt Corporation reports the following data: Sales Variable Costs Fixed Costs $425,000 $255,000 Contribution Margin $170,000 $85,000 Income from Operations $85,000 Determine Matt Corporation's operating leverage.
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