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Stellar Systems Ltd. has fixed costs of $400,000 and a profit of $200,000. What is its degree of operating leverage? a) 0.5 b) 1.5 c) 2.0 d) 3.0

Stellar Systems Ltd. has fixed costs of $400,000 and a profit of $200,000. What is its degree of operating leverage? a) 0.5 b) 1.5 c) 2.0 d) 3.0

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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What is it's degree of operating leverage on these financial accounting question?

Stellar Systems Ltd. has fixed costs of $400,000 and a profit of $200,000. What is its degree of operating leverage? a) 0.5 b) 1.5 c) 2.0 d) 3.0
Transcribed Image Text:Stellar Systems Ltd. has fixed costs of $400,000 and a profit of $200,000. What is its degree of operating leverage? a) 0.5 b) 1.5 c) 2.0 d) 3.0
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