Burns Corporation
Information Relating to the Current Operations of Burns $\$ 120,000$

Essay

Burns Corporation
Information relating to the current operations of Burns Corporation follows:
Sales                                                                         $\$ 120,000$
Variable costs                                                          $\underline{(36,000)}$
Contribution margin                                                  $84,000
Fixed costs                                                            $\underline{(70,000)}$
Profit before taxes                                                  $\underline{\$14,000}$
Refer to Burns Corporation.Compute Burns's degree of operating leverage.