Variable cost:438000, fixed cost:160000 Wilkinson Ltd. reports the following data:Sales910,000Variable costs438,000Contribution margin472,000Fixed costs160,000Income from operations 312,000Determine Wilkinson Ltd.'s operating leverage. Roundyour answer to one decimal place.

Explanation of Operating Leverage: Operating leverage measures the degree to which a firm uses fixed…

Answered: Wilkinson Ltd. reports the following…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.16E

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Wilkinson Ltd. reports the following data: Sales 910,000 Variable costs 438,000 Contribution margin 472,000 Fixed costs 160,000 Income from operations 312,000 Determine Wilkinson Ltd.'s operating leverage. Round your answer to one decimal place.