menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Accounting
  4. Exam
    Exam 21: Cost Behavior and Cost-Volume-Profit Analysis
  5. Question
    If Sales Are $400,000, Variable Costs Are 75% of Sales
Solved

If Sales Are $400,000, Variable Costs Are 75% of Sales

Question 177

Question 177

Multiple Choice

If sales are $400,000, variable costs are 75% of sales, and operating income is $50,000, what is the operating leverage?


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

Correct Answer:

verifed

Verified

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

Related Questions

Q31: If employees accept a wage contract that

Q35: If the volume of sales is $7,000,000

Q160: Which of the following is not an

Q173: The graph of a variable cost when

Q173: As production increases, what should happen to

Q178: Carmelita Company sells 40,000 units at $18

Q179: If sales are $525,000, variable costs are

Q181: If fixed costs are $500,000 and variable

Q182: For the current year ending April 30,

Q187: A production supervisor's salary that does not

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