If Sales Are $400,000, Variable Costs Are 75% of Sales

question 177

Multiple Choice

If sales are $400,000, variable costs are 75% of sales, and operating income is $50,000, what is the operating leverage?

• A) 2.5
• B) 7.5
• C) 2.0
• D) 0

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Definitions:

Malleus

A small bone in the middle ear that transmits sound vibrations from the eardrum to the inner ear.

Presbycusis

Age-related hearing loss, gradually occurring as individuals get older.

External Acoustic Meatus

The external passage of the ear leading to the tympanic membrane, or eardrum.

Auditory Canal

The tube that runs from the outer ear to the middle ear, transmitting sound waves collected by the ear's auricle (outer part) to the tympanic membrane.