Show work. Alpha Corporation reported the following data for its most recent year: sales, $500,000; variable expenses, $300,000; and fixed expenses, $150,000. The company's degree of operating leverage is: a. 10 b. 2 c. 4 d. 2.5

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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Show work. Alpha Corporation reported the following data
for its most recent year: sales, $500,000; variable expenses,
$300,000; and fixed expenses, $150,000. The company's
degree of operating leverage is:
a. 10
b. 2
c. 4
d. 2.5
Transcribed Image Text:Show work. Alpha Corporation reported the following data for its most recent year: sales, $500,000; variable expenses, $300,000; and fixed expenses, $150,000. The company's degree of operating leverage is: a. 10 b. 2 c. 4 d. 2.5
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