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Bluebird Inc. has variable expenses that are 60% of sales and fixed monthly expenses of $12,000. The company is targeting a monthly operating income of $4,000. What is Bluebird Inc.'s operating leverage factor at the target level of operating income? A) 4.00 B) 2.00 C) 3.00 D) 1.50

Bluebird Inc. has variable expenses that are 60% of sales and fixed monthly expenses of $12,000. The company is targeting a monthly operating income of $4,000. What is Bluebird Inc.'s operating leverage factor at the target level of operating income? A) 4.00 B) 2.00 C) 3.00 D) 1.50

Principles of Accounting Volume 2
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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Bluebird Inc. has variable expenses that are 60% of sales and fixed monthly expenses of $12,000. The company is targeting a monthly operating income of $4,000. What is Bluebird Inc.'s operating leverage factor at the target level of operating income? A) 4.00 B) 2.00 C) 3.00 D) 1.50
Transcribed Image Text:Bluebird Inc. has variable expenses that are 60% of sales and fixed monthly expenses of $12,000. The company is targeting a monthly operating income of $4,000. What is Bluebird Inc.'s operating leverage factor at the target level of operating income? A) 4.00 B) 2.00 C) 3.00 D) 1.50
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