Target leval of opereting income? Julia's Catering has a monthly targetoperating income of $6,000. Variableexpenses are 40% of sales and monthlyfixed expenses are $3,600. What is Julia'soperating leverage factor at the target levelof operating income?a. 0.40b. 1.60c. 2.67d. 0.63

The operating leverage factor is calculated as: Operating Leverage Factor = Contribution Margin /…

Answered: Julia's Catering has a monthly target…

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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Julia's Catering has a monthly target operating income of $6,000. Variable expenses are 40% of sales and monthly fixed expenses are $3,600. What is Julia's operating leverage factor at the target level of operating income? a. 0.40 b. 1.60 c. 2.67 d. 0.63