If Sales Are $400,000, Variable Costs Are 80% of Sales

question 93

Multiple Choice

If sales are $400,000, variable costs are 80% of sales, and operating income is $40,000, what is the operating leverage?

• A) 0.0
• B) 7.5
• C) 2.0
• D) 1.3

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Definitions:

Patient Care

The services and interventions provided by health care professionals to patients to improve or maintain their health status.

Laboratory Workers

Professionals who perform or assist in conducting experiments and analyses in a lab setting, often related to chemistry, biology, or medicine.

Analytic Laboratory

A facility equipped for performing scientific experiments and analyses, often involving chemical or biological substances.

Optical Microscope

A laboratory instrument used to magnify objects that are too small to be seen with the naked eye by using lenses and light.