A printing company has variable expenses equal to 30% of sales andmonthly fixed expenses of $180,000. The monthly target operatingincome is $90,000.What is the operating leverage factor at the target level of operatingincome?

Step 1: Definition of Operating Leverage FactorThe operating leverage factor measures how a change…

Answered: A printing company has variable…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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A printing company has variable expenses equal to 30% of sales and monthly fixed expenses of $180,000. The monthly target operating income is $90,000. What is the operating leverage factor at the target level of operating income?