Teague Co. reports the following data: Sales Variable costs Contribution margin Fixed costs $480,000 264,000 $216,000 175,200 $40,800 Income from operations Determine Teague Co.'s operating leverage. Round your answer to one decimal place.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 16E
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**Operating Leverage**

Teague Co. reports the following data:

- **Sales:** $480,000
- **Variable costs:** $264,000
- **Contribution margin:** $216,000
- **Fixed costs:** $175,200
- **Income from operations:** $40,800

**Determine Teague Co.’s operating leverage. Round your answer to one decimal place.**
Transcribed Image Text:**Operating Leverage** Teague Co. reports the following data: - **Sales:** $480,000 - **Variable costs:** $264,000 - **Contribution margin:** $216,000 - **Fixed costs:** $175,200 - **Income from operations:** $40,800 **Determine Teague Co.’s operating leverage. Round your answer to one decimal place.**
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