The following income statement is provided for Vargas, Inc. ?Sales revenue (2,500 units × $60 per unit)$150,000 ?Cost of goods sold (variable; 2,500 units × $20 per unit) (50,000) ?Cost of goods sold (fixed) (8,000) ?Gross margin 92,000 ?Administrative salaries (42,000) ?Depreciation (10,000) ?Supplies (2,500 units × $4 per unit) (10,000) ?Net income$30,000 ?? What is this company's magnitude of operating leverage?
A. 3.00
B. 3.07
C. 1.67
D. 0.33
Answer: A
You might also like to view...
The present value of a two-year bond with a future payment of $1,345.50 and the yield to maturity of 3.6 percent is?
A. ?$1,300 B. ?$1,500.50 C. ?$1,253.62 D. ?$1,246.72
Fanatics are citizen marketers who are typically
A) paid endorsers of brand products. B) devoutly religious consumers. C) brand-loyal sports enthusiasts. D) true believers and love to analyze brands. E) television viewers that do not use the Internet.
Which of the following is true of ownership titles when confusion occurs?
A) Title to the goods can never be shared between the owners involved. B) Title to goods commingled without permission goes to the innocent party. C) Title to goods cannot be acquired by confusion. D) Title to the goods can only be acquired if goods were commingled by accident.
The first marine environmental protection convention was:
a. the Barcelona Convention. b. the Helsinki Convention. c. the London Convention. d. the Montreal Protocol.