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sales are $450,000, variable costs are 55% of sales, and operating income is $75,000, what is the operating leverage? a. 2.667 b. 4.000 c. 3.273 d. 5.125

sales are $450,000, variable costs are 55% of sales, and operating income is $75,000, what is the operating leverage? a. 2.667 b. 4.000 c. 3.273 d. 5.125

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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sales are $450,000, variable costs are 55% of sales, and operating income is $75,000, what is the operating leverage? a. 2.667 b. 4.000 c. 3.273 d. 5.125
Transcribed Image Text:sales are $450,000, variable costs are 55% of sales, and operating income is $75,000, what is the operating leverage? a. 2.667 b. 4.000 c. 3.273 d. 5.125
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