Grocery has a monthly target operating income of S25.000. Variable expenses are 20% 15,000. What is Neeley Grocery's operating leverage 39) 39) Neeley of sales and monthly fixed expenses are s factor at the target level of operating income? A) 1.60 B) 0.63 C) 0.40 D) 2.67 40 40) Regis Corporation wants to know how closely its current cost driver is correlated with its monthly operating costs. The managerial accountant runs a regression analysis using a statistical software program and produces the following data: Intercept Coefficient 2,200,567 X Variable 1 Coefficient 95.65 R-square = 0.8574 What is the Regis Corporation's monthly cost equation? A) y $0.8574x + $12,200,567 C) y $12,200,567x+$8,574 D) y $95.65x $12,200,567 41) Johnson Trucking Company wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven to each area. It wants to separate the fixed and variable portion of the truck's operating costs so it has a better idea of how distance affects these costs. Johnson Trucking Company has the following data available Month January Februar March April Ma une Miles driven 16,200 17,00 18,200 16,500 17,400 15,400 Total operating costs 650 $24,150 $22,875 $23,550 050 Using the high-low method, the fixed costs in a month are A) $46,200. B) $10,500. C) $ 2,100. D) $13,650. 42) Stanley's Bicycles store buys bicycles on average for $600 and sells them on average for $750 He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $1.400 a month rent for his store, and also pays $3,000 a month to his staff in addition to the commissions. Stanley sold 120 bicycles in June. If Stanley prepares a traditional income statement for the month of June, what would be his operating income? B) $90,000 C) $35,900 D) $18,000 A) S100