Mercantile Corporation Has Sales of $2,000,000, Variable Costs of $1,100,000

question 26

Multiple Choice

Mercantile Corporation has sales of $2,000,000, variable costs of $1,100,000, and fixed costs of $750,000.Mercantile's degree of operating leverage is

• A)1.22.
• B)1.47.
• C)1.20.
• D)6.00.