In a company with low operating leverage, ________.

[codyclark]

Question 1

If the contribution margin ratio is 0.60, targeted operating income is $50,000, and fixed costs are $75,000, then sales volume in dollars is ________. (Round the final answer to the nearest dollar.)
◦ $312,500
◦ $208,333
◦ $125,000
◦ $83,333

Question 2

In a company with low operating leverage, ________.
◦ fixed costs are more than the contribution margin
◦ contribution margin and operating income are inversely related
◦ there is a higher possibility of net loss than a higher-leveraged firm
◦ less risk is assumed than in a highly leveraged firm

[matt95]

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[codyclark]

Thanks for the timely response, appreciate it

[yeungji]

Wow, this really help