Based on the Following Operating Data,the Operating Leverage Is A) 018
B) 5

question 96

Multiple Choice

Based on the following operating data,the operating leverage is: $$\begin{array} { l r } \text { Sales } & \$ 500,000 \\\text { Variable costs } & \underline{280,000} \\\text { Contribution margin } & 220,000 \\\text { Fixed costs } & \underline{180,000} \\\text { Income from operations }& \underline{\$ 40,000} \\\end{array}$$

• A) 0.18
• B) 5.50
• C) 1.22
• D) 12.5

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Definitions:

Spring Beverage Company

Assuming it is a named entity, this would refer to a specific company involved in the production or distribution of beverages associated with the spring season or having 'Spring' in its name.

Enforceable

Capable of being imposed or upheld by law, referring to contracts, agreements, or rules that can be legally compelled.

Essential Terms

The necessary and fundamental conditions included in a contract that are critical to its enforcement and validity.

Unenforceable

Refers to a contract or clause that, due to legal deficiencies, cannot be executed by a court.