Respuesta :

If sales are $400,000, variable costs are 75% of sales, and operating income is $40,000, what is the operating leverage? 

Sales = $400,000
Variable costs = .75
($400,000) (.75) = $300,000

Operating leverage = ($400,000 - $300,000)/$40,000 = 2.5
Operating leverage is 2.5

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