Burger Queen Restaurant had the following information available related to its operations from last year Sales (150,000 units) $500,000 Variable costs 200,000 Contribution margin $300,000 Fixed costs 150,000 Net income $150,000 A What is Burger Queens operating leverage B If sales increased by 30 ,...

Burger Queen Restaurant had the following information available related to its operations from last year: Sales (150,000

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Burger Queen Restaurant had the following information available related to its operations from last year:
Sales (150,000 units) ......... $500,000
Variable costs ........... 200,000
......... $300,000
Fixed costs ............ 150,000
Net income ............ $150,000
A. What is Burger Queen’s operating leverage?
B. If sales increased by 30%, what would Burger Queen’s net income be?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...

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Managerial Accounting A Focus on Ethical Decision Making

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Question Posted: Mar 11, 2015 10:59 AM

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Burger Queen Restaurant had the following information available related to its operations from last year: Sales (150,000

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Managerial Accounting A Focus on Ethical Decision Making

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