Please provide solution this financial accounting question Lakeshore Enterprises has a monthly target operating income of$50,000. Variable expenses are 40% of sales, and monthly fixedexpenses are $12,000.What is Lakeshore Enterprises' operating leverage factor at the targetlevel of operating income?

Step 1: Definition of Operating Leverage FactorThe Operating Leverage Factor measures how a change…

Answered: Lakeshore Enterprises has a monthly…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 22MC: If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month,...

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Lakeshore Enterprises has a monthly target operating income of $50,000. Variable expenses are 40% of sales, and monthly fixed expenses are $12,000. What is Lakeshore Enterprises' operating leverage factor at the target level of operating income?