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Rose Corp. If sales are $500,000, variable costs are 68% of sales, and operating income is $50,000, what is the operating leverage? (a) 3.2 (b) 2.9 (c) 3.0 (d) 2.5

Rose Corp. If sales are $500,000, variable costs are 68% of sales, and operating income is $50,000, what is the operating leverage? (a) 3.2 (b) 2.9 (c) 3.0 (d) 2.5

Principles of Accounting Volume 2
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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Rose Corp. If sales are $500,000, variable costs are 68% of sales, and operating income is $50,000, what is the operating leverage? (a) 3.2 (b) 2.9 (c) 3.0 (d) 2.5

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