Question
Assume ABC Corp. anticipates achieving the following results next year. What willthe company's degree of operating leverage be next year? Annual Sales $160,000 Annual Units
Assume ABC Corp. anticipates achieving the following results next year. What willthe company's degree of operating leverage be next year?
Annual Sales $160,000
Annual Units Sold 20,000
Variable Cost/unit $5
Total Fixed Cost$20,000
Interest Expense $2,500
Shares Outstanding5,000
Select one:
A. 1.00xB. 1.50xC. 3.5xD. 2.00xE. 2.25x
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
