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Neeley Grocery has a monthly target operating income of $25,000

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Neeley Grocery has a monthly target operating income of $25,000. Variable expenses are 20% of sales and monthly fixed expenses are $15,000. What is Neeley Grocery's operating leverage factor at the target level of operating income?

A) 0.63

B) 2.67

C) 0.40

D) 1.60