Paxton Corp has provided the following data concerning its operations last month:
$\begin{array} { | l | r | }
\hline \text { Sales } & \$ 400,000 \
\hline \text { Variable expenses } & \$ 250,000 \
\hline \text { Fixed expenses } & \$ 100,000 \
\hline
\end{array}$Paxton Corp is a retailing organization.

-What is the degree of operating leverage?
A) 3.
B) 8.
C) 0.33.
D) 5.

Question

Paxton Corp has provided the following data concerning its operations last month:
$\begin{array} { | l | r | } 
\hline \text { Sales } & \$ 400,000 \
\hline \text { Variable expenses } & \$ 250,000 \
\hline \text { Fixed expenses } & \$ 100,000 \
\hline
\end{array}$Paxton Corp is a retailing organization.

-What is the degree of operating leverage?
A) 3.
B) 8.
C) 0.33.
D) 5.

Quizplus · Accepted Answer

The Answer of Paxton Corp has provided the following data concerning its operations last month:
$\begin{array} { | l | r | } 
\hline \text { Sales } & \$ 400,000 \
\hline \text { Variable expenses } & \$ 250,000 \
\hline \text { Fixed expenses } & \$ 100,000 \
\hline
\end{array}$Paxton Corp is a retailing organization.

-What is the degree of operating leverage?
A) 3.
B) 8.
C) 0.33.
D) 5.

Paxton Corp Has Provided the Following Data Concerning Its Operations