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:

Business Proposition

A value statement that outlines why a customer should buy a product or use a service, essentially defining the purpose and benefits of the business.

Industrial Product

Goods or services sold from one business to another for the production of other goods or services, rather than for direct consumption by the consumer.

Conviction Stage

is a phase in the sales process where the potential customer develops a strong belief in the value and benefits of the product, leading towards a purchase decision.

Salesperson's Goal

The primary objective of a salesperson, which typically involves meeting or exceeding specific sales targets or quotas within a set timeframe.