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Tom's Taxidermy has a monthly target operating income of $25,000

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Tom's Taxidermy has a monthly target operating income of $25,000. Variable expenses are 75% of sales and monthly fixed expenses are $15,000. What is Tom's operating leverage factor at the target level of operating income?

A) 0.40

B) 0.63

C) 1.60

D) 2.67