The following income statement is provided for Alpine Manufacturing: Description Amount Sales Revenue (2,500 @ $40 per unit) 100,000 Variable Cost (2,500 @ $15 per unit) 37,500 Fixed Cost Net Income 42,500 20,000 What is this company's magnitude of operating leverage?

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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The following income statement is provided for Alpine Manufacturing:
Description
Amount
Sales Revenue (2,500 @ $40 per unit) 100,000
Variable Cost (2,500 @ $15 per unit) 37,500
Fixed Cost
Net Income
42,500
20,000
What is this company's magnitude of operating leverage?
Transcribed Image Text:The following income statement is provided for Alpine Manufacturing: Description Amount Sales Revenue (2,500 @ $40 per unit) 100,000 Variable Cost (2,500 @ $15 per unit) 37,500 Fixed Cost Net Income 42,500 20,000 What is this company's magnitude of operating leverage?
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