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Rand Company has sales of $200,000, variable expenses of $90,000, and fixed costs of $60,000. What is Rand's operating leverage and what does that mean
Rand Company has sales of $200,000, variable expenses of $90,000, and fixed costs of $60,000. What is Rand's operating leverage and what does that mean to Rand Company? Rand's operating leverage is 2.7. Rand's income will grow 2.7 times as fast as its contribution margin. Rand's operating leverage is 2.5. Rand's expenses will grow 2.5 times as fast as sales. Rand's operating leverage is 2.0. Rand's income will grow 2.0 times as fast as fixed costs. Rand's operating leverage is 2.2. Rand's income will grow 2.2 times as fast as sales
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