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    Exam 20: Cost-Volume-Profit Analysis
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    If Sales Are $400,000, Variable Costs Are 80% of Sales
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If Sales Are $400,000, Variable Costs Are 80% of Sales

Question 114

Question 114

Multiple Choice

If sales are $400,000, variable costs are 80% of sales, and operating income is $40,000, the operating leverage is


A) 0.0
B) 7.5
C) 2.0
D) 1.3

Correct Answer:

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