The following information was drawn from the records of Calico Company Income Statement Sales Revenue (300@ $650 per unit) Cost of Goods Sold: Variable (300 @ $350 per unit) Fixed Gross Margin Sales Commissions (300 @ $30) Depreciation Net Income Based on this information the magnitude of operating leverage is approximately: Note: Round you answer to 2 decimal places. Multiple Choice 1.17. 111. $ 195,000 1.24. (105,000) (10,500) 79,500 (9,000) (1,500) $ 69,000

Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter8: Tactical Decision-making And Relevant Analysis
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Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...
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The following information was drawn from the records of Calico Company
Sales Revenue (300 @ $650 per unit)
Cost of Goods Sold: Variable (300 @ $350 per unit)
Fixed
Gross Margin
Sales Commissions (300 @ $30)
Depreciation
Net Income
Multiple Choice
Based on this information the magnitude of operating leverage is approximately:
Note: Round you answer to 2 decimal places.
O
O
O
O
1.17.
1.11.
Income Statement
1.24.
0.89.
$ 195,000
(105,000)
(10,500)
79,500
(9,000)
(1,500)
$ 69,000
Transcribed Image Text:The following information was drawn from the records of Calico Company Sales Revenue (300 @ $650 per unit) Cost of Goods Sold: Variable (300 @ $350 per unit) Fixed Gross Margin Sales Commissions (300 @ $30) Depreciation Net Income Multiple Choice Based on this information the magnitude of operating leverage is approximately: Note: Round you answer to 2 decimal places. O O O O 1.17. 1.11. Income Statement 1.24. 0.89. $ 195,000 (105,000) (10,500) 79,500 (9,000) (1,500) $ 69,000
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