Target Contribution margin=Fixed cost+Target profits
=(21000+6300)=$27300
Hence operating leverage=Contribution margin/Operating income
=(27300/6300)
which is equal to
=4.33(Approx).
Yellow Company's variable expenses are 30% of sales and have monthly fixed expenses of $ 1...
Yellow Company's variable expenses are 20% of sales and have monthly fixed expenses of $24,000. The monthly target operating income is $4,000. What is Yellow Company's operating leverage factor at the target level of operating income? OA 0.14 OB 5.6 Oc. 7 OD 1.17 Vck to select your answer
Yellow Company's variable expenses are 40% of sales and have monthly fixed expenses of $15,000. The monthly target operating income is $3,600. What is Yellow Company's operating leverage factor at the target level of operating income? What is operating income if sales volume increases 10%? A. 0.19; $3,668 B.2.06; $4,342 C. 1.24; $4,046 D. 5.17; $5,461
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