Question
QUESTION 5 Zingers sells 500000 lighters per annum. Each lighter has a variable cost of R0,98 and sells for R6.00. Fixed operating costs amount to
QUESTION 5
Zingers sells 500000 lighters per annum. Each lighter has a variable cost of R0,98 and sells for R6.00. Fixed operating costs amount to R36000. The annual interest charge is R4000. Preference shares carry dividends amounting to R 8 000 and a tax rate of 30% applies. The degree of operating leverage is: (rounded to the second decimal point)
| A. | 1,31 | |
| B. | 1,21 | |
| C. | 1,41 | |
| D. | 1,01 |
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
5th Edition
126078035X, 978-1260780352
