Use the Information Below to Answer the Following Question(s)

question 157

Multiple Choice

Use the information below to answer the following question(s) .
Northern Electric Co-op has variable expenses of 25% of sales and monthly fixed expenses of $285,000. The monthly target operating income is $75,000.
-What is N Electric Co-op's operating leverage factor at the target level of operating income?

• A) 3.8
• B) 4.8
• C) 1.26
• D) 0.79

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Definitions:

Unscored Tablets

Tablets without a scored line, which are not meant to be split or divided before taking.

XR

Stands for extended-release, referring to a medication designed to release a drug slowly over time.

Crushed

Describes material that has been broken down into smaller pieces by pressure.

International 24-Hour Clock

A timekeeping system that extends from 00:00 to 23:59, reducing ambiguity by using a full 24-hour cycle, commonly used in military, aviation, and global communications.