If sales are $325,000, variable costs are 75% of sales, and operating income is $45,600, what is the operating leverage? a. 1.3 b. 1.8 c. 0.0 d. 5.3

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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If sales are $325,000, variable costs are 75% of sales, and operating income is $45,600, what is the operating leverage?

a. 1.3

b. 1.8

c. 0.0

d. 5.3

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