Whicky Corp. reports the following data: Sales $875,000 Variable costs $412,000 Contribution margin $463.000 Fixed costs $158,000 Income from operations $305,000 Determine Whicky Corp.'s operating leverage.

Whicky Corp. reports the following data: Sales $875,000 Variable costs $412,000 Contribution margin $463.000 Fixed costs $158,000 Income from operations $305,000 Determine Whicky Corp.'s operating leverage.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...

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Operating leverage

Whicky Corp. reports the following data:
Sales
$875,000
Variable costs
$412,000
Contribution margin
$463.000
Fixed costs
$158,000
Income from operations $305,000
Determine Whicky Corp.'s operating leverage.

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