The following information is available for the Bright and Raven Companies for 2023. Bright Raven Sales (200,000 units) $2,100,000 $2,000,000 Variable costs 900,000 1,400,000 Contribution margin 1,200,000 600,000 Fixed costs 600,000 150,000 $450,000 Net operating income $600,000 Compute the operating leverage for each company. Record your answer to one decimal place, if necessary.
The following information is available for the Bright and Raven Companies for 2023. Bright Raven Sales (200,000 units) $2,100,000 $2,000,000 Variable costs 900,000 1,400,000 Contribution margin 1,200,000 600,000 Fixed costs 600,000 150,000 $450,000 Net operating income $600,000 Compute the operating leverage for each company. Record your answer to one decimal place, if necessary.
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
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Compute the operating leverage for each company
Transcribed Image Text:The following information is available for the Bright and Raven
Companies for 2023.
Bright Raven
Sales (200,000 units) $2,100,000 $2,000,000
Variable costs
900,000
1,400,000
Contribution margin 1,200,000
600,000
Fixed costs
600,000
150,000
$450,000
Net operating income $600,000
Compute the operating leverage for each company.
Record your answer to one decimal place, if necessary.
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