Operating leverage Haywood Co. reports the following data: Line Item Description Amount Sales $6,160,000 Variable costs (4,620,000) Contribution margin $1,540,000 Fixed costs (440,000) Operating income $1,100,000 Determine Haywood Co.’s operating leverage. Round your answer to one decimal place.
Operating leverage Haywood Co. reports the following data: Line Item Description Amount Sales $6,160,000 Variable costs (4,620,000) Contribution margin $1,540,000 Fixed costs (440,000) Operating income $1,100,000 Determine Haywood Co.’s operating leverage. Round your answer to one decimal place.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...
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Operating leverage
Haywood Co. reports the following data:
Line Item Description | Amount |
---|---|
Sales | $6,160,000 |
Variable costs | (4,620,000) |
Contribution margin | $1,540,000 |
Fixed costs | (440,000) |
Operating income | $1,100,000 |
Determine Haywood Co.’s operating leverage. Round your answer to one decimal place.
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