Fancy Furniture Has Variable Expenses of 40% of Sales and Monthly

question 252

Multiple Choice

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

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Definitions:

Profitability Each Trip

The measure of how much profit is generated from each individual trip or journey, commonly used in transportation and logistics.

Number New Passengers

Number new passengers typically refers to the count of first-time or newly acquired passengers by a transportation service within a specific timeframe, representing growth or expansion.

Critical Success Factors

Essential elements or conditions that must be achieved for an organization or project to successfully meet its objectives and goals.

Key Performance

A metric used to gauge the effectiveness, efficiency, and performance of an organization's activities or employees.