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Sales of Blistre Autos are 400,000, variable cost is 250,000, fixed cost is 90,000 tax rate is 20% Calculate the operating le

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Answer #1
Sales 400,000
Less:Variable costs 250,000
Contribution margin 150,000
Less:fixed costs 90,000
Operating income 60,000

Operating leverage=contribution margin/operating income

=150,000/60,000

=2.5 times

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