A company's contribution income statement as follows:
TREAT EACH PART INDEPENDENTLY
Questions for Reginad Company
Sales (20,000 units @ 60 per unit) $1,200,000
Less: Variable cost 20,000@ $45 900,000
Contribution margin 300,000
Less fixed cost 240,000
Net income 60,000
What is the operating leverage of the company?
5
2
4
3
none of the above