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also, what is the financial leverage for this figure. 1.29x or 4.50x or 3.50x or 1.32x Sales (75,000 units) Variable costs Contribution margin Fixed manufacturing
also, what is the financial leverage for this figure. 1.29x or 4.50x or 3.50x or 1.32x
Sales (75,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (at 31%) Net Income Shares outstanding $750,000 225,000 $525,000 187.500 $337,500 75.000 $262,500 81.375 $181,125 15,000 Refer to the figure above. The Degree of Operating Leverage is 143x O 1.56x O 333x O 2.22xStep by Step Solution
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