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Zero Company is planning the next year of operations and has just compiled the following Contribution Margin Income Statement: CM Income Statement Units Sold Per
Zero Company is planning the next year of operations and has just compiled the following Contribution Margin Income Statement:
CM Income Statement
Units Sold Per Unit Total
Sales 2,000 $600 $1, 200,000
Variable Cost 2,000 $100 $200,000
Contribution Margin $1,000,000
Less Fixed Cost $900,000
Total Income Before Tax $100,000
Based on this information, Zero Company's leverage factor is ______________.
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