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Ridgeway Corporation sells a single product. Its annual revenue is $2,500,000, and profit is $180,000. Fixed costs amount to $450,000. What is its operating leverage?

Ridgeway Corporation sells a single product. Its annual revenue is $2,500,000, and profit is $180,000. Fixed costs amount to $450,000. What is its operating leverage?

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...
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Ridgeway Corporation sells a single product. Its annual revenue is $2,500,000, and profit is $180,000. Fixed costs amount to $450,000. What is its operating leverage?
Transcribed Image Text:Ridgeway Corporation sells a single product. Its annual revenue is $2,500,000, and profit is $180,000. Fixed costs amount to $450,000. What is its operating leverage?
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