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Yellow Company's variable expenses are 40% of sales and have monthly fixed expenses of $15,000. The monthly target operating income is $3,600. What is Yellow
Yellow Company's variable expenses are 40% of sales and have monthly fixed expenses of $15,000. The monthly target operating income is $3,600. What is Yellow Company's operating leverage factor at the target level of operating income? What is operating income if sales volume increases 10%?
A. 0.19; $3,668
B.2.06; $4,342
C. 1.24; $4,046
D. 5.17; $5,461
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