Carson Cabana's Inc The Company's Operating Leverage Was:
A) 1

Carson Cabana's Inc.has the following information available regarding last year's operations:
$\begin{array}{lc} \text { Sales} &\$1500000\\ \text { Variable costs } &\underline{600000}\\ \text {Contribution margin } &900000\\ \text { Fixed costs} &\underline{300000\$}\\ \text { Net income } &\underline{600000}\\\end{array}$

The company's operating leverage was:

A) 1.5
B) .67
C) 2.5
D) .60

Correct Answer:

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