Cartersville Company's operating leverage is Cartersville Co. reports the following data:Sales $405,200Variable costs $251,200-Contribution margin - $154,000Fixed costs $117,300-Income from operations - $36,700Determine Cartersville Company's operating leverage.Round your answer to one decimal place

Step 1: Definition of Operating LeverageOperating leverage measures how a company's operating income…

Answered: Cartersville Co. reports the following…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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Cartersville Co. reports the following data: Sales $405,200 Variable costs $251,200 - Contribution margin - $154,000 Fixed costs $117,300 - Income from operations - $36,700 Determine Cartersville Company's operating leverage. Round your answer to one decimal place