Green Valley Catering has a monthly target operating income of $8,000. Variable expenses are 50% of sales, and monthly fixed expenses are $4,000. What is Green Valley's operating leverage factor at the target level of operating income?

Green Valley Catering has a monthly target operating income of $8,000. Variable expenses are 50% of sales, and monthly fixed expenses are $4,000. What is Green Valley'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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I am trying to find the accurate solution to this financial accounting problem with the correct explanation.

Green Valley Catering has a monthly target operating income of
$8,000. Variable expenses are 50% of sales, and monthly fixed
expenses are $4,000. What is Green Valley's operating leverage
factor at the target level of operating income?

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