Westminster Co. reports the following data: Sales $875,000 Variable costs 425,000 Contribution margin $450,000 Fixed costs 150,000 Income from operations $300,000 Determine Westminster Co.'s operating leverage. Round your answer to one decimal place.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 17E
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Westminster Co. reports the following data:
Sales $875,000
Variable costs 425,000
Contribution margin $450,000
Fixed costs 150,000
Income from operations $300,000
Determine Westminster Co.'s operating leverage. Round your answer to one
decimal place.
Transcribed Image Text:Westminster Co. reports the following data: Sales $875,000 Variable costs 425,000 Contribution margin $450,000 Fixed costs 150,000 Income from operations $300,000 Determine Westminster Co.'s operating leverage. Round your answer to one decimal place.
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