Mountain View Corp. has the following Contribution Margin Income Statement: Sales: $800,000 • Variable Costs: $480,000 • Contribution Margin: $320,000 Fixed Costs: $280,000 • Total Income before Tax: $40,000 At this level of activity, what is the leverage factor for Mountain View Corp.? A. 5.00 B. 8.00 C. 7.00 D. 6.25
Mountain View Corp. has the following Contribution Margin Income Statement: Sales: $800,000 • Variable Costs: $480,000 • Contribution Margin: $320,000 Fixed Costs: $280,000 • Total Income before Tax: $40,000 At this level of activity, what is the leverage factor for Mountain View Corp.? A. 5.00 B. 8.00 C. 7.00 D. 6.25
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 13E
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Transcribed Image Text:Mountain View Corp. has the following Contribution Margin Income Statement:
Sales: $800,000
•
Variable Costs: $480,000
•
Contribution Margin: $320,000
Fixed Costs: $280,000
•
Total Income before Tax: $40,000
At this level of activity, what is the leverage factor for Mountain View Corp.?
A. 5.00
B. 8.00
C. 7.00
D. 6.25
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