Calculate Operating Leverage If Sales Are $342,000, Variable Costs Are

question 77

Multiple Choice

Calculate operating leverage if sales are $342,000, variable costs are 58% of sales, and operating income is $42,000.

• A) 6.24
• B) 4.27
• C) 5.25
• D) 3.42

---

Definitions:

Implementation Intentions

Strategic plans individuals form about when, where, and how they will fulfill a specific goal or task.

Knowledge Work

Work that primarily involves processing, using, and managing information or data rather than manual labor.

Outsourcing

A business strategy where specific tasks, operations, jobs, or processes are contracted out to external parties rather than performed in-house.

Temporary Employee

A worker hired for a predetermined, limited period of time, often to fill in for absent employees or to complete specific projects.