Southwest Electric Co-Op Has Variable Expenses of 20% of Sales

question 15

Multiple Choice

Southwest Electric Co-op has variable expenses of 20% of sales and monthly fixed expenses of $150,000.The monthly target operating income is $50,000.What is Southwest Electric Co-op's operating leverage factor at the target level of operating income?

• A)1.33
• B)2.00
• C)4.00
• D)0.25

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Definitions:

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Variables that describe ways in which individuals differ from each other in their behavior, traits, and cognition.

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in research, refers to the controlled alteration of an independent variable to observe its effect on a dependent variable.

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Assessed or quantified through a systematic process or instrument.

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