What is the operating leverage for this financial accounting question? Novak Enterprises reports sales of $450,000. Its variablecosts are 65% of sales, and its operating income is $52,500.What is the operating leverage?

Step 1: Definition of Operating LeverageOperating leverage is a financial metric that measures how…

Answered: Novak Enterprises reports sales of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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Novak Enterprises reports sales of $450,000. Its variable costs are 65% of sales, and its operating income is $52,500. What is the operating leverage?