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Elegant Interiors has variable expenses of 35% of sales and monthly fixed expenses of $180,000. The company's monthly target operating income is $45,000. What is Elegant Interiors' operating leverage factor at the target level of operating income? A. 3.5 B. 4.0 C. 4.5 D. 5.0

Elegant Interiors has variable expenses of 35% of sales and monthly fixed expenses of $180,000. The company's monthly target operating income is $45,000. What is Elegant Interiors' operating leverage factor at the target level of operating income? A. 3.5 B. 4.0 C. 4.5 D. 5.0

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 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...
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Elegant Interiors has variable expenses of 35% of sales and monthly fixed expenses of $180,000. The company's monthly target operating income is $45,000. What is Elegant Interiors' operating leverage factor at the target level of operating income? A. 3.5 B. 4.0 C. 4.5 D. 5.0
Transcribed Image Text:Elegant Interiors has variable expenses of 35% of sales and monthly fixed expenses of $180,000. The company's monthly target operating income is $45,000. What is Elegant Interiors' operating leverage factor at the target level of operating income? A. 3.5 B. 4.0 C. 4.5 D. 5.0
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