Question Solved1 Answer Alpha Limited has sales of £100,000, variable costs of £40,000 and fixed costs of £40,000. What is the operating gearing of the company? a. 3 b.4 O c. 6 d. 2

7EB7H6 The Asker · Accounting

Transcribed Image Text: Alpha Limited has sales of £100,000, variable costs of £40,000 and fixed costs of £40,000. What is the operating gearing of the company? a. 3 b.4 O c. 6 d. 2
More
Transcribed Image Text: Alpha Limited has sales of £100,000, variable costs of £40,000 and fixed costs of £40,000. What is the operating gearing of the company? a. 3 b.4 O c. 6 d. 2
See Answer
Add Answer +20 Points
Community Answer
TWGNOB
See all the answers with 1 Unlock
Get 4 Free Unlocks by registration

Operating gearing = contribution margin ÷ operating income  Contribution margin = sales - variable cost  = 100,000 - 40,000 = 60,000  Operating income = sales ... See the full answer