Use the same information for #37-39

Serenity by Jan sells high quality handmade candles. They expect to sell 500 candles this year. The average sales price for one candle is $15, with an average cost per candle of $3. The fixed expenses for the year are $4,800.

Question 39 will be solving for the operating leverage factor, questions 37 and 38 are intermediate calculations that help solve question 39.

Question 37- Calculate the total contribution margin, for the sales level of 500 candles.

	A.	$1,500
	B.	$6,000
	C.	$9,000
	D.	$7,500

Use the same information for #37-39

Serenity by Jan sells high quality handmade candles. They expect to sell 500 candles this year. The average sales price for one candle is $15, with an average cost per candle of $3. The fixed expenses for the year are $4,800.

Question 39 will be solving for the operating leverage factor, questions 37 and 38 are intermediate calculations that help solve question 39.

Question 38- Calculate the operating income.

	A.	$(2,700)
	B.	$4,200
	C.	$2,700
	D.	$1,200

Use the same information for #37-39

Serenity by Jan sells high quality handmade candles. They expect to sell 500 candles this year. The average sales price for one candle is $15, with an average cost per candle of $3. The fixed expenses for the year are $4,800.

Question 39 will be solving for the operating leverage factor, questions 37 and 38 are intermediate calculations that help solve question 39.

Question 39- Calculate the operating leverage factor.

	A.	3.33
	B.	0.20
	C.	5
	D.	1.25