Question: Required: Using Operating Leverage, compute taxable income for the year if sales increase 15 % Q1 Q1 Q2 Q4 Sales $ 300,000 $ 500,000 $425,000

Required: Using Operating Leverage, compute taxable income for the year if sales increase 15 % Q1 Q1 Q2 Q4 Sales $ 300,000 $ 500,000 $425,000 $ 125,000 Total cost $ 270,000 $ 400,000 $ 351,250 $ 156,250 Net income $ 30,000 $ 100,000 $ 73,750 $ (31,250) O $492.857 O $1.552.500 O None of the other answers are correct O$243,375 O $857.143 Year $ 1,350,000 $1,177,500 $ 172.500

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