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

question 159

Multiple Choice

Use the information below to answer the following question(s) .
Julia's Catering has a monthly target operating income of $6,000. Variable expenses are 40% of sales and monthly fixed expenses are $3,600.
-What is Julia's operating leverage factor at the target level of operating income?

• A) 0.63
• B) 0.40
• C) 1.60
• D) 2.67

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Definitions:

Systole

The phase of the heartbeat when the heart muscle contracts and pumps blood from the chambers into the arteries.

Heart

A muscular organ that pumps blood through the circulatory system by rhythmic contraction and expansion.

Pulmonary Trunk

The major blood vessel that originates from the right ventricle of the heart and bifurcates into the left and right pulmonary arteries, carrying deoxygenated blood to the lungs.