Hi expert please give me answer general accounting Green Enterprises' variable expenses are 30% ofsales. The company has monthly fixed expenses of$18,000 and a monthly target operating income of$6,000. What is Green Enterprises' operatingleverage factor at the target level of operatingincome?A) 4.00B) 1.25C) 2.50D) 3.00

Step 1: Define Operating Leverage FactorThe operating leverage factor measures the sensitivity of a…

Answered: Green Enterprises' variable expenses…

Principles of Accounting Volume 2

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Chapter3: Cost-volume-profit Analysis

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Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...

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Green Enterprises' variable expenses are 30% of sales. The company has monthly fixed expenses of $18,000 and a monthly target operating income of $6,000. What is Green Enterprises' operating leverage factor at the target level of operating income? A) 4.00 B) 1.25 C) 2.50 D) 3.00