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NARU'S PARTIAL INCOME STATEMENT: SALES $1,200,000.00 LESS: VARIABLE COSTS $700,000.00 CONTRIBUTION MARGIN $500,000.00 LESS: FIXED COSTS $250,000.00 NET OPERATING INCOME $250,000.00 WHAT IS NARU'S OPERATING LEVERAGE?

NARU'S PARTIAL INCOME STATEMENT: SALES $1,200,000.00 LESS: VARIABLE COSTS $700,000.00 CONTRIBUTION MARGIN $500,000.00 LESS: FIXED COSTS $250,000.00 NET OPERATING INCOME $250,000.00 WHAT IS NARU'S OPERATING LEVERAGE?

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.16E
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WHAT IS NARU'S OPERATING LEVERAGE ?

NARU'S PARTIAL INCOME STATEMENT: SALES $1,200,000.00 LESS: VARIABLE COSTS $700,000.00 CONTRIBUTION MARGIN $500,000.00 LESS: FIXED COSTS $250,000.00 NET OPERATING INCOME $250,000.00 WHAT IS NARU'S OPERATING LEVERAGE?
Transcribed Image Text:NARU'S PARTIAL INCOME STATEMENT: SALES $1,200,000.00 LESS: VARIABLE COSTS $700,000.00 CONTRIBUTION MARGIN $500,000.00 LESS: FIXED COSTS $250,000.00 NET OPERATING INCOME $250,000.00 WHAT IS NARU'S OPERATING LEVERAGE?
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