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The following income statement is provided for Gibson, Inc. Description Amount ($) Sales Revenue (1,800 @ $35 per unit) 63,000 Variable Cost (1,800 @ $12 per unit) 21,600 Fixed Cost Net Income 22,400 19,000 What is this company's magnitude of operating leverage?

The following income statement is provided for Gibson, Inc. Description Amount ($) Sales Revenue (1,800 @ $35 per unit) 63,000 Variable Cost (1,800 @ $12 per unit) 21,600 Fixed Cost Net Income 22,400 19,000 What is this company's magnitude of operating leverage?

Managerial Accounting
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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What is this company's magnitude of operating leverage?

The following income statement is provided for Gibson, Inc. Description Amount ($) Sales Revenue (1,800 @ $35 per unit) 63,000 Variable Cost (1,800 @ $12 per unit) 21,600 Fixed Cost Net Income 22,400 19,000 What is this company's magnitude of operating leverage?
Transcribed Image Text:The following income statement is provided for Gibson, Inc. Description Amount ($) Sales Revenue (1,800 @ $35 per unit) 63,000 Variable Cost (1,800 @ $12 per unit) 21,600 Fixed Cost Net Income 22,400 19,000 What is this company's magnitude of operating leverage?
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