Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If sales are $400,000, variable costs are 80% of sales, and operating income is $40,000, what is the operating leverage? a) 2.0 b )0.0 c)

If sales are $400,000, variable costs are 80% of sales, and operating income is $40,000, what is the operating leverage? a) 2.0 b

)0.0 c) 7.5 d) 1.3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Attorneys IRS Audit Technique Guide

Authors: Internal Revenue Service

1st Edition

1304112918, 978-1304112910

More Books

Students also viewed these Accounting questions

Question

Prepare for a successful job interview.

Answered: 1 week ago

Question

Describe barriers to effective listening.

Answered: 1 week ago

Question

List the guidelines for effective listening.

Answered: 1 week ago