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The following income statement is provided for Grant, Inc. Sales revenue (1,700 @ $15.20 per unit) Variable costs (1,700 @ $7
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Answer : Operating Leverage = 1.36 Times

Operating Leverage =Contribution Margin / Operating income

Contribution Margin = 25,840-12,240 =13600

Operating income = Contribution Margin - Operating Income = 13,600-3,600= 10,000

Operating Leverage = 13,600 / 10,000= 1.36 (Answer)

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