Green Enterprises has variable expenses equal to 50% of sales and monthly fixed costs of $12,000. The company has a target operating income of $4,000. What is Green Enterprises' operating leverage factor at the target level of operating income?

Green Enterprises has variable expenses equal to 50% of sales and monthly fixed costs of $12,000. The company has a target operating income of $4,000. What is Green Enterprises' 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

Opereting income?

Green Enterprises has variable expenses equal
to 50% of sales and monthly fixed costs of
$12,000. The company has a target operating
income of $4,000. What is Green Enterprises'
operating leverage factor at the target level of
operating income?

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