Fost Corporation's Contribution Margin Ratio Is 20

question 131

Multiple Choice

Fost Corporation's contribution margin ratio is 20%. If the degree of operating leverage is 15 at the $225,000 sales level, net operating income at the $225,000 sales level must equal:

• A)$2,250
• B)$6,750
• C)$3,000
• D)$5,063

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