Answered: If sales are $325,000, variable costs…

If sales are $325,000, variable costs are 75% of sales, and operating income is $49,200, the operating leverage is A. 5.0 B. 0.0 C. 1.7

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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Question

If sales are $325,000, variable costs are 75% of sales, and operating income is $49,200, the operating leverage is

A. 5.0

B. 0.0

C. 1.7

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