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:

Fair Value Zone

A range within which a stock's price is considered to reflect its true value based on financial analysis and market conditions.

Value Map

A value map is a visual tool that outlines the value proposition a company offers to its customers in comparison with its competitors.

Product's Cost

The total expenditure incurred to produce, market, and distribute a product.

Qualitative Research

A method of inquiry that focuses on understanding human behavior and the reasons that govern such behavior.