Chapter 4, Problem 4.10E

The main Purpose of Financial Accounting is? To Provide financial information to shareholders To maintain balance sheet To minimize taxes. To keep track of liabilities

Can you help me solve this General accounting problem using the correct accounting process?

Finch Co. has sales of 4,800 units at $97 per unit. Variable costs are 42% of the sales price. If total fixed costs are $132,000, the degree of operating leverage is_. a. 0.80 b. 1.96 c. 2.05 d. 2.40 help