menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Managerial Accounting Tools Study Set 2
  4. Exam
    Exam 6: Reporting and Analyzing Inventory
  5. Question
    Mercantile Corporation Has Sales of $2,000,000, Variable Costs of $1,100,000
Solved

Mercantile Corporation Has Sales of $2,000,000, Variable Costs of $1,100,000

Question 26

Question 26

Multiple Choice

Mercantile Corporation has sales of $2,000,000, variable costs of $1,100,000, and fixed costs of $750,000.Mercantile's degree of operating leverage is


A) 1.22.
B) 1.47.
C) 1.20.
D) 6.00.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q1: The margin of safety tells a company

Q4: Cost structure refers to the relative proportion

Q14: If Buttercup, Inc. sells two products with

Q23: In 2012, Hagar Corp.sold 3,000 units at

Q24: In 2012, Raleigh sold 1,000 units at

Q27: Moonwalker's CVP income statement included sales of

Q28: A cost structure which relies more heavily

Q31: For Sanborn Co., sales is $1,000,000, fixed

Q67: Cost-volume-profit analysis is the study of the

Q111: In CVP analysis, cost includes manufacturing costs

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines