Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prominent corporation Grand Plans has sales revenue of 380,000, variable cost is 230,000, fixed cost is 90,000 tax rate is 40%. Calculate the operating leverage

image text in transcribed

Prominent corporation Grand Plans has sales revenue of 380,000, variable cost is 230,000, fixed cost is 90,000 tax rate is 40%. Calculate the operating leverage of the company. O A. 1.53 times O B. 1.50 times O C. 4.17 times O D. 2.50 times

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_2

Step: 3

blur-text-image_3

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

Management And Cost Accounting

Authors: Charles T. Horngren, Alnoor Bhimani, Srikant M. Datar, George Foster

1st Edition

0130805475, 978-0130805478

More Books

Students also viewed these Accounting questions

Question

Use both financial and nonfinancial measures of quality

Answered: 1 week ago

Question

Differentiate between business risk and financial risk

Answered: 1 week ago