Question: Using Operating Leverage, compute taxable income for the year if sales increase 15% Q1 Q1 Q2 Q4 Year Sales $ 300,000 $ 500,000 $ 425,000
| Using Operating Leverage, compute taxable income for the year if sales increase 15% | |||||
| Q1 | Q1 | Q2 | Q4 | Year | |
| Sales | $ 300,000 | $ 500,000 | $ 425,000 | $ 125,000 | $ 1,350,000 |
| Total cost | $ 270,000 | $ 400,000 | $ 351,250 | $ 156,250 | $ 1,177,500 |
| Net income | $ 30,000 | $ 100,000 | $ 73,750 | $ (31,250) | $ 172,500 |
Group of answer choices
$243,375
$1,552,500
$857,143
None of the other answers are correct
$492,857
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