If the Contribution Margin Ratio Is 0

question 145

Multiple Choice

If the contribution margin ratio is 0.40,targeted operating income is $80,000,and targeted sales volume in dollars is $500,000,then the degree of operating leverage is ________.

• A) 1.50 times
• B) 2.00 times
• C) 2.50 times
• D) 3.00 times

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