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Yellow Company's Variable Expenses Are 40% of Sales and Have

Question 268

Multiple Choice

Yellow Company's variable expenses are 40% of sales and have monthly fixed expenses of $15,000. The monthly target operating income is $3600. What is Yellow Company's operating leverage factor at the target level of operating income?


A) 1) 24
B) 0) 19
C) 3) 10
D) 5) 17

Correct Answer:

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