Company X has monthly fixed expenses of $1,260. They also have a current monthly operating income of $7,300 and variable expenses equal to 70% of sales. What is Company Xs operating leverage factor at the current level of operating income?

Group of answer choices

0.83

1.17

0.85

None of these.

6.79

Coldplay companys monthly fixed expenses are $24,000 and they have a monthly operating income goal of $5,600. The companys variable costs are currently 20% of sales. Assuming the company hits their income goal, what is the monthly margin of safety in dollars?

Group of answer choices

$29,600

$37,000

$7,000

$67,000

None of these.

PreviousNext