Earning before interest and taxes 200000 sales 900000 Variable cost 400000

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Sales revenue 1000000 variable cost 400000 fixed cost 100000 common shares 50...
Posted by:
Ahmed kandil
28-March-2015

Operating leverage will be A-3 B-2 C-1.5 D-4

Accounting Cost Accounting Financial Accounting CMA Costing

Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/31

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1 Answers

Muhammad Rehan Tahir ACCA

by Muhammad Rehan Tahir ACCA , Treasury Manager , Farouk, Maamoun Tamer & Company

Contribution margin =900,000 -400,000=500,000

Operating leverage =500,000/200,000 =2.5

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