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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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