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What is burger queen operating leverage

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Reference no: EM131590226

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

Contributed margin 300 000

Fixed Costs 150 000

Net Profit 150 000

Required

a. What is Burger Queen's operating leverage?

b. If sales increased by 30 per cent, what would Burger Queen's net profit be?

Reference no: EM131590226

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