Matthew's Fish Fry has a monthly target operating income of $7,200

Accounting Mar 05, 2021

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?

A) 0.75

B) 1.25

C) 5.00

D) 0.80

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