Correct answer The following income statement is provided for Gibson,Inc.DescriptionAmount ($)Sales Revenue (1,800 @ $35 per unit) 63,000Variable Cost (1,800 @ $12 per unit) 21,600Fixed CostNet Income22,40019,000What is this company's magnitude of operatingleverage?

The magnitude of operating leverage (MOL) measures how a company's operating income responds to…

Answered: The following income statement is…

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 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?