Carson Cabana's Inc The Company's Operating Leverage Was:
A) 1

question 105

Multiple Choice

Carson Cabana's Inc.has the following information available regarding last year's operations:
$\begin{array}{lc} \text { Sales} &\$1500000\\ \text { Variable costs } &\underline{600000}\\ \text {Contribution margin } &900000\\ \text { Fixed costs} &\underline{300000\$}\\ \text { Net income } &\underline{600000}\\\end{array}$

The company's operating leverage was:

• A) 1.5
• B) .67
• C) 2.5
• D) .60

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Definitions:

Average Number

Denotes the numerical value found by dividing the sum of all values in a set by the count of values in the set.

μ

The sign typically utilized to denote the average or mean in math and statistical analysis.

Poisson Distribution

A numerical distribution detailing the probability of specific event counts happening over a determined timeframe or spatial range.

Negative Exponential Distribution

A probability distribution used to model the time between events in a Poisson process, representing the decay of quantities.