Help Getting Started Library Guide UNDERGRADUATE BUSINESS AL

Help Getting Started Library Guide UNDERGRADUATE BUSINESS ALLIANCE Managerial Accounting (SU18) me Content Classlist Discussions Grades Assignments & Exams Surveys Groups EXAM 2 -Quiz mit: 1:15:00 Time Left: 1:07:35 Casey Follmer: Attempt 1 Question 24 (4 points) 7 8 9 10 D Company has the following income statement for the current year. Sales revenue$1,400,000 Total variable costs 800,000 Contribution margin 600,000 Total fixed costs Net Income What is D Company\'s operating leverage factor? 12 13 14 15 17 18 19 20 500,000 100,000 Quiz Status uiz Started O a) 14 b) 6 Ef

Solution

b) 6

Operating leverage = Contribution margin / Net income = $600,000 / $100,000 = 6