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  3. Study Set
    Fundamental Managerial Accounting Concepts Study Set 1
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    Exam 2: Cost Behavior, operating Leverage, and Profitability Analysis
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    Mark Company,Inc
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Mark Company,Inc

Question 107

Question 107

Multiple Choice

Mark Company,Inc.sells electronics.The company generated sales of $45,000.Contribution margin is $20,000 and net income is $4,000.Based on this information,the magnitude of operating leverage is:


A) 2.25
B) 11.25
C) 5.00
D) 6.25

Correct Answer:

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