Question
Fixed Costs: $10 billion Variable Costs: $30 billion (includes 100% of SG&A) SG&A: $5 billion Net Income: $5 billion If 80% of SG&A costs were
Fixed Costs: $10 billion
Variable Costs: $30 billion (includes 100% of SG&A)
SG&A: $5 billion
Net Income: $5 billion
If 80% of SG&A costs were reclassified as fixed, what is the company's new operating leverage factor?
The company's Operating Leverage Factor before reclassification was 3.0.
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Business Statistics For Contemporary Decision Making
Authors: Black Ken
8th Edition
409
