Use the information below to answer the following question(s) .
Hartville Kitchens has a monthly target operating income of $18,000. Variable expenses are 25% of sales and monthly fixed expenses are $12,000.
-What is Hartville Kitchens' operating leverage factor at the target level of operating income?
A) 2.50
B) 1.67
C) 0.33
D) 0.60
Correct Answer:
Verified
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