Alina's Catering has a monthly target operating income of $16,000. Variable expenses are 40% of sales and monthly fixed expenses are $14,000. What is Alina's operating leverage factor at the target level of operating income? a. 0.40 b. 1.875 c. 2.67 d. 0.63

Alina's Catering has a monthly target operating income of $16,000. Variable expenses are 40% of sales and monthly fixed expenses are $14,000. What is Alina's operating leverage factor at the target level of operating income? a. 0.40 b. 1.875 c. 2.67 d. 0.63

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...

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Question

??!!

Alina's Catering has a monthly target operating
income of $16,000. Variable expenses are 40%
of sales and monthly fixed expenses are
$14,000. What is Alina's operating leverage
factor at the target level of operating income?
a. 0.40 b. 1.875 c. 2.67 d. 0.63

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