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:

Arrhythmia

An irregular heartbeat, which can feel like a racing heart or fluttering, and can be harmless or a sign of a serious heart condition.

Ventricular Flutter

A rapid heart rhythm originating from the ventricles, characterized by a heart rate of 200 to 250 beats per minute, which can be life-threatening.

I49.01

I49.01 is a medical classification code for Ventricular Fibrillation, an irregular heart rhythm disorder.

Epicardium

The outermost layer of the heart wall, also part of the pericardium.