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

question 157

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
• B) 7.500
• C) 2.0
• D) 1.333

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Definitions:

Modifier

A keyword in programming languages that you use to specify the properties of an attribute, method, or class, such as public, private, or static.

Specify

To specify means to identify something clearly and explicitly.

Outside A Class

Refers to code or functions that are defined or executed outside of a class definition in object-oriented programming.

Formal Parameter Lists

Specifies the variables that a function or method accepts as input, defining the type and order of arguments it can receive.