Delaney's Bakery has a monthly target operating income of $7,500. Variable expenses are 45% of sales, and monthly fixed expenses are $4,800. What is Delaney's operating leverage factor at the target level of operating income?

Delaney's Bakery has a monthly target operating income of $7,500. Variable expenses are 45% of sales, and monthly fixed expenses are $4,800. What is Delaney's operating leverage factor at the target level of operating income?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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Question

Please provide correct answer this financial accounting question not use ai please don't

Delaney's Bakery has a monthly target operating income
of $7,500. Variable expenses are 45% of sales, and
monthly fixed expenses are $4,800.
What is Delaney's operating leverage factor at the target
level of operating income?

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