Sales = 962,000, Variable Costs = 467,500, Fixed Costs = 165,000 Question:Bengal Co. reports the following data:Sales962,500Variable costs467,500Contribution margin 495,000Fixed costs165,000Income from operations 330,000Determine Bengal Co.'s operating leverage.

Explanation of Operating Leverage: This is a measure that shows how changes in sales volume affect a…

Answered: Question: Bengal Co. reports the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question: Bengal Co. reports the following data: Sales 962,500 Variable costs 467,500 Contribution margin 495,000 Fixed costs 165,000 Income from operations 330,000 Determine Bengal Co.'s operating leverage.