Solved: Burger queen restaurant had the following information, Accounting Basics

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Burger queen restaurant had the following information

Question - Burger Queen Restaurant had the following information available related to its operations from last year:

Sales (150,000 units) - $500,000

Variable costs - 200,000

Contribution margin - $300,000

Fixed costs - 150,000

Net income - $150,000

A. What is Burger Queen's operating leverage?

B. If sales increased by 30%, what would Burger Queen's net income be?

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Accounting Basics: Burger queen restaurant had the following information

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Accounting Basics: Burger queen restaurant had the following information

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