Answered: Swift Enterprises has sales of…

Swift Enterprises has sales of $500,000, variable costs are 70% of sales, and operating income is $75,000. What is the operating leverage? a. 0 b. 1.5 c. 2.33 d. 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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If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month, what is their degree of operating leverage? A. 0.18 B. 1.18 C. 2.4 D. 4.7
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