Question
YellowCompany's variable expenses are40% of sales and have monthly fixed expenses of$15,000. The monthly target operating income is$3,750 and the contribution at this level is$18,750.
YellowCompany's variable expenses are40% of sales and have monthly fixed expenses of$15,000. The monthly target operating income is$3,750 and the contribution at this level is$18,750. What is YellowCompany's operating leverage factor at the target level of operatingincome?
A.(3.00)
B.5.00
C.0.20
D.1.25
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
13th edition
978-1-119-4110, 1119411483, 9781119411017, 978-1119411482
