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The following income statement is provided for Matrix, Inc. • • • Sales Revenue (2,000 units @ $40 per unit): $80,000 Variable Costs (2,000 units @ $15 per unit): $30,000 Fixed Costs: $20,000 Net Income: $10,000 What is this company's magnitude of operating leverage? a. 0.25 b. 1.50 c. 2.00 d. 5.00

The following income statement is provided for Matrix, Inc. • • • Sales Revenue (2,000 units @ $40 per unit): $80,000 Variable Costs (2,000 units @ $15 per unit): $30,000 Fixed Costs: $20,000 Net Income: $10,000 What is this company's magnitude of operating leverage? a. 0.25 b. 1.50 c. 2.00 d. 5.00

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
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what is this companys magnitude of operating leverage ?

The following income statement is provided for Matrix, Inc. • • • Sales Revenue (2,000 units @ $40 per unit): $80,000 Variable Costs (2,000 units @ $15 per unit): $30,000 Fixed Costs: $20,000 Net Income: $10,000 What is this company's magnitude of operating leverage? a. 0.25 b. 1.50 c. 2.00 d. 5.00
Transcribed Image Text:The following income statement is provided for Matrix, Inc. • • • Sales Revenue (2,000 units @ $40 per unit): $80,000 Variable Costs (2,000 units @ $15 per unit): $30,000 Fixed Costs: $20,000 Net Income: $10,000 What is this company's magnitude of operating leverage? a. 0.25 b. 1.50 c. 2.00 d. 5.00
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