Econ Pty Ltd produced and sold 45 000 units of a single product last year. Data concerning the year's profit and loss statement is as follows:
What was Econ's operating leverage?

A) 4
B) 5
C) 6
D) 7

Operating Leverage

A measure of how revenue growth translates into growth in operating income due to fixed versus variable costs.

Profit And Loss Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, reflecting the company's profit or loss.