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Mountain View Resort has a monthly target operating income of $24,000. Variable expenses are 30% of sales and monthly fixed expenses are $18,000. What is Mountain View Resort's operating leverage factor at the target level of operating income? a. 0.75 b. 1.25 c. 1.75 d. 2.25

Mountain View Resort has a monthly target operating income of $24,000. Variable expenses are 30% of sales and monthly fixed expenses are $18,000. What is Mountain View Resort's operating leverage factor at the target level of operating income? a. 0.75 b. 1.25 c. 1.75 d. 2.25

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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Mountain View Resort has a monthly target operating income of $24,000. Variable expenses are 30% of sales and monthly fixed expenses are $18,000. What is Mountain View Resort's operating leverage factor at the target level of operating income? a. 0.75 b. 1.25 c. 1.75 d. 2.25
Transcribed Image Text:Mountain View Resort has a monthly target operating income of $24,000. Variable expenses are 30% of sales and monthly fixed expenses are $18,000. What is Mountain View Resort's operating leverage factor at the target level of operating income? a. 0.75 b. 1.25 c. 1.75 d. 2.25
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