Answered: Wham Company sells electronic squirrel…

Wham Company sells electronic squirrel repellants. The following data are given: Unit selling price $55.00 Variable costs ratio (Variable costs as a % of selling price) 39.00% Total fixed cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Wham Company sells electronic squirrel repellants. The following data are given: Unit selling price $55.00 Variable costs ratio (Variable costs as a % of selling price) 39.00% Total fixed costs $45,000 Number of units sold 2,500 What is the magnitude of operating leverage? Round your answer to two digits.

2.16

1.64

0.46

1.38

3.54

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