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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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