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3 years ago

Cartersville Co. reports the following data:

Business

1 answer:

4vir4ik [10]3 years ago

6 0

Answer:

5.1(Approx)

Explanation:

Given that,

Sales = $787,100

Variable costs = (480,100)

Contribution margin = $307,000

Fixed costs = (246,800)

Operating income = $60,200

Operating leverage:

= Contribution margin ÷ Operating income

= $307,000 ÷ $60,200

= 5.1 (Approx).

Therefore, the operating leverage of Cartersville Co. is 5.1 (approx).

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2 years ago

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Answer:

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Answer:

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3 years ago

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Answer

The answer and procedures of the exercise are attached in the following archives.

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