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    Exam 11: Cost Behavior, Operating Leverage, and Profitability Analysis
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    Wham Company Sells Electronic Squirrel Repellants for $60
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Wham Company Sells Electronic Squirrel Repellants for $60

Question 123

Question 123

Multiple Choice

Wham Company sells electronic squirrel repellants for $60. Variable costs are 60% of sales and total fixed costs are $40,000. What is the firm's magnitude of operating leverage if 2,000 units are sold?


A) 0.17
B) 6.0
C) 2.25
D) none of these

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