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Yellow Stone Co. has the following Contribution Margin Income Statement: Unit Price Total Sales $480.00 $2,400,960 Variable Costs $372.00 $1,860,744 Contribution Margin $540,216 Less Fixed Costs $456,840 $ Total Income before Tax At the level of activity in the example, Yellow Stone Corp. would have a leverage factor of: A. 10 B. 4.56 C. 7.48 D. 6.48

Yellow Stone Co. has the following Contribution Margin Income Statement: Unit Price Total Sales $480.00 $2,400,960 Variable Costs $372.00 $1,860,744 Contribution Margin $540,216 Less Fixed Costs $456,840 $ Total Income before Tax At the level of activity in the example, Yellow Stone Corp. would have a leverage factor of: A. 10 B. 4.56 C. 7.48 D. 6.48

FINANCIAL ACCOUNTING
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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Please provide the accurate answer to this financial accounting problem using valid techniques.

Yellow Stone Co. has the following Contribution Margin Income Statement: Unit Price Total Sales $480.00 $2,400,960 Variable Costs $372.00 $1,860,744 Contribution Margin $540,216 Less Fixed Costs $456,840 $ Total Income before Tax At the level of activity in the example, Yellow Stone Corp. would have a leverage factor of: A. 10 B. 4.56 C. 7.48 D. 6.48
Transcribed Image Text:Yellow Stone Co. has the following Contribution Margin Income Statement: Unit Price Total Sales $480.00 $2,400,960 Variable Costs $372.00 $1,860,744 Contribution Margin $540,216 Less Fixed Costs $456,840 $ Total Income before Tax At the level of activity in the example, Yellow Stone Corp. would have a leverage factor of: A. 10 B. 4.56 C. 7.48 D. 6.48
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