Paxton Corp is a retailing organization.

Paxton Corp has provided the following data concerning its operations last month:

Sales ........................ $400,000

Variable Expenses .... $250,000

Fixed Expenses ........ $100,000

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part 1) The operating leverage is:

a. 0.33

b. 8

c. 3

d. 5

Part 2) The contribution margin ratio is:

a. 25.0%

b. 12.5%

c. 33.0%

d. 37.5%

Part 3) The break-even sales in dollars is (round to the nearest dollar):

a. $333,333

b. $148,148

c. $266,667

d. $350,000