If sales are $300,000, variable costs are 75% of sales, and operating income is $40,000, what is

Question:

If sales are $300,000, variable costs are 75% of sales, and operating income is $40,000, what is the operating leverage?
a. 0
b. 7.500
c. 1.875
d. 1.333

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Accounting A Managerial Emphasis

ISBN: 978-0133392883

6th Canadian edition

Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ

Question Posted: