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    Exam 21: Cost-Volume-Profit Analysis
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    Beemer's Sales Are $400,000, Variable Costs Are 75% of Sales
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Beemer's Sales Are $400,000, Variable Costs Are 75% of Sales

Question 202

Question 202

Multiple Choice

Beemer's sales are $400,000, variable costs are 75% of sales, and operating income is $50,000. The operating leverage is


A) 2.5
B) 7.5
C) 2.0
D) 0

Correct Answer:

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