Luxury Lamps has variable expenses of 50% of sales and monthly fixed expenses of $180,000. The monthly target operating income is $45,000. What is Luxury Lamps's operating leverage factor at the target level of operating income?

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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Luxury lamps has variable expenses solve this accounting questions

Luxury Lamps has variable expenses of 50% of
sales and monthly fixed expenses of $180,000. The
monthly target operating income is $45,000. What
is Luxury Lamps's operating leverage factor at the
target level of operating income?
Transcribed Image Text:Luxury Lamps has variable expenses of 50% of sales and monthly fixed expenses of $180,000. The monthly target operating income is $45,000. What is Luxury Lamps's operating leverage factor at the target level of operating income?
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