Burns Corporation
Information relating to the current operations of Burns Corporation follows:
Sales $ \$ 120,000 $
Variable costs $\underline{(36,000)}$
Contribution margin $84,000
Fixed costs $\underline{(70,000)}$
Profit before taxes $\underline{\$14,000}$
Refer to Burns Corporation.Compute Burns's degree of operating leverage.

Question

Burns Corporation
Information relating to the current operations of Burns Corporation follows:
 Sales                                                                          $ \$ 120,000 $
Variable costs                                                          $\underline{(36,000)}$
Contribution margin                                                  $84,000
Fixed costs                                                            $\underline{(70,000)}$
Profit before taxes                                                  $\underline{\$14,000}$
 Refer to Burns Corporation.Compute Burns's degree of operating leverage.

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The Answer of Burns Corporation
Information relating to the current operations of Burns Corporation follows:
 Sales                                                                          $ \$ 120,000 $
Variable costs                                                          $\underline{(36,000)}$
Contribution margin                                                  $84,000
Fixed costs                                                            $\underline{(70,000)}$
Profit before taxes                                                  $\underline{\$14,000}$
 Refer to Burns Corporation.Compute Burns's degree of operating leverage.

Burns Corporation Information Relating to the Current Operations of Burns $120,000 \$ 120,000 $120,000

Burns Corporation
Information Relating to the Current Operations of Burns $\$ 120,000$