Use the following information to answer the following Questions
Edmonco Company produced and sold 45,000 units of a single product last year, with the following results:
-Edmonco's operating leverage factor was:
A) 4.
B) 5.
C) 6.
D) 7.
E) 8.

Question

Use the following information to answer the following Questions
Edmonco Company produced and sold 45,000 units of a single product last year, with the following results:
-Edmonco's operating leverage factor was:
A) 4. 
B) 5. 
C) 6. 
D) 7. 
E) 8.

Quizplus · Accepted Answer

The operating leverage factor is calculated as the percentage change in operating income divided by the percentage change in sales. Without specific data, we assume the correct choice based on typical leverage factors.

Use the Following Information to Answer the Following Questions