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Homework answers / question archive / Fancy Furniture has variable expenses of 40% of sales and monthly fixed expenses of $240,000
Fancy Furniture has variable expenses of 40% of sales and monthly fixed expenses of $240,000. The monthly target operating income is $60,000. What is Fancy Furniture's operating leverage factor at the target level of operating income?
A) 0.20
B) 5.00
C) 6.75
D) 1.25