Matthew's Fish Fry has a monthly target operating income of $7,200.Variable expenses are 60% of sales and monthly fixed expenses are $1,800.What is Matthew's operating leverage factor at the target level of operating income?

Question

Quizplus · Accepted Answer

B)
Target income 7,200
+ Fixed expense 1,800
9,000
Divided by target Inc.7,200
Operating leverage = 1.25

Matthew's Fish Fry Has a Monthly Target Operating Income of $7,200.Variable