Based on the Following Operating Data, the Operating Leverage Is

question 33

Multiple Choice

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

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

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