
Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Subject accounting

Transcribed Image Text:Blue Corporation has variable expenses equal to 35% of sales and
monthly fixed costs of $20,000. The company has a target operating
income of $5,000. What is Blue Corporation's operating leverage
factor at the target level of operating income?
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