Burger Queen Restaurant had the following information available related to
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 Queen’s operating leverage?
B. If sales increased by 30%, what would Burger Queen’s net income be?

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help