Calculation Of Operating Leverage

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Question

Kendall Company has sales of 1,500 units at $60 a unit. Variable expenses are 30% of the selling price. If total fixed expenses are $53,000, the degree of operating leverage is:

a. 9.00

b. 2.70

c. 2.87

d. 6.30

Summary

The question belongs to Accounting and it discusses about calculation of operating leverage.

Total Word Count 25

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