Purple Bell Butter Company Increased Its Sales by $2,000 Over

question 83

Multiple Choice

Purple Bell Butter Company increased its sales by $2,000 over that of the previous years's figure of $50,000.Consequently,Purple Bell's earnings before interest and taxes increased from $3,000 to $3,300 during the same period.Calculate Purple Bell's operating leverage.

• A) 25
• B) 4
• C) 2.5
• D) none of the above

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