Pratt Corporation
Information relating to the current operations of Pratt Corporation follows:
$\begin{array}{ll}
\text { Sales } & \$ 120,000 \
\text { Variable costs } & (\underline{36,000}) \
\text { Contribution margin } & \$ 84,000 \
\text { Fixed costs } & (\underline{\$ 70,000}) \
\text { Profit before taxes } & \$ 14,000
\end{array}$ Refer to Pratt Corporation.Compute Pratt's degree of operating leverage.

Question

Pratt Corporation
Information relating to the current operations of Pratt Corporation follows:
 $\begin{array}{ll}
\text { Sales } & \$ 120,000 \
\text { Variable costs } & (\underline{36,000}) \
\text { Contribution margin } & \$ 84,000 \
\text { Fixed costs } & (\underline{\$ 70,000}) \
\text { Profit before taxes } & \$ 14,000
\end{array}$ Refer to Pratt Corporation.Compute Pratt's degree of operating leverage.

Quizplus · Accepted Answer

The Answer of Pratt Corporation
Information relating to the current operations of Pratt Corporation follows:
 $\begin{array}{ll}
\text { Sales } & \$ 120,000 \
\text { Variable costs } & (\underline{36,000}) \
\text { Contribution margin } & \$ 84,000 \
\text { Fixed costs } & (\underline{\$ 70,000}) \
\text { Profit before taxes } & \$ 14,000
\end{array}$ Refer to Pratt Corporation.Compute Pratt's degree of operating leverage.

Pratt Corporation Information Relating to the Current Operations of Pratt

Pratt Corporation
Information Relating to the Current Operations of Pratt