Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution margin 300,000 Less fixed cost 240,000 Net income 60,000 What is the operating leverage of the company? O none of the above O 2 O 5 O 4 3.

Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution margin 300,000 Less fixed cost 240,000 Net income 60,000 What is the operating leverage of the company? O none of the above O 2 O 5 O 4 3.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4BE

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Question

Sales (20,000 units @ 60 per unit) $1,200,000
Less: Variable cost 20,000@ $45 900,000
Contribution margin 300,000
Less fixed cost 240,000
Net income 60,000
What is the operating leverage of the company?
O none of the above
O 2
O 5
O 4
O 3

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