Accounting answer Jensen's Bakery has a monthly target operating income of $9,000. Variableexpenses are 45% of sales and monthly fixed expenses are $5,400. What isJensen's operating leverage factor at the target level of operating income?a. 1.75b. 0.45c. 2.50d. 1.60

Step 1: Definition of Operating Leverage FactorThe operating leverage factor measures the…

Answered: Jensen's Bakery has a monthly target…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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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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Jensen's Bakery has a monthly target operating income of $9,000. Variable expenses are 45% of sales and monthly fixed expenses are $5,400. What is Jensen's operating leverage factor at the target level of operating income? a. 1.75 b. 0.45 c. 2.50 d. 1.60