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J&A Corporation has a monthly target operating income of $40,600. Variable expenses are 30% of sales and monthly fixed expenses are $8,400. What is J&A's operating leverage factor at the target level of operating income? A. 0.17 B. 5.83 C. 0.66 D. 1.21

J&A Corporation has a monthly target operating income of $40,600. Variable expenses are 30% of sales and monthly fixed expenses are $8,400. What is J&A's operating leverage factor at the target level of operating income? A. 0.17 B. 5.83 C. 0.66 D. 1.21

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 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...
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J&A Corporation has a monthly target operating income of $40,600. Variable expenses are 30% of sales and monthly fixed expenses are $8,400. What is J&A's operating leverage factor at the target level of operating income? A. 0.17 B. 5.83 C. 0.66 D. 1.21
Transcribed Image Text:J&A Corporation has a monthly target operating income of $40,600. Variable expenses are 30% of sales and monthly fixed expenses are $8,400. What is J&A's operating leverage factor at the target level of operating income? A. 0.17 B. 5.83 C. 0.66 D. 1.21
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