Question : 161. If sales $400,000, variable costs 80% of sales, and operating : 1246788
161. If sales are $400,000, variable costs are 80% of sales, and operating income is $40,000, what is the operating leverage? A. 0B. 7.500C. 2.0D. 1.333 162. If a business had a margin of safety ratio of 20%, variable costs of 75% of sales, fixed costs of $240,000, a break-even point of $960,000, and operating income of $60,000 for the current year, what are the current year’s sales? A. $1,200,000B. $1,040,000C. $1,260,000D. $1,020,000 […]