Sales of Blistre Autos are 400,000, variable cost is 230,000, fixed cost is 90,000 tax rate is 40%. Calculate the operating leverage of the company. A) 1.13 times B) 3.54 times C) 1.35 times D) 2.13 times

Sales of Blistre Autos are 400,000, variable cost is 230,000, fixed cost is 90,000 tax rate is 40%. Calculate the operating leverage of the company. A) 1.13 times B) 3.54 times C) 1.35 times D) 2.13 times

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

Sales of Blistre Autos are 400,000, variable cost is 230,000, fixed cost is 90,000 tax rate is 40%.
Calculate the operating leverage of the company.
A) 1.13 times
B) 3.54 times
C) 1.35 times
D) 2.13 times

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