Determine Cartersville Co.’s operating leverage.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 22MC: If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month,...
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Operating Leverage

Cartersville Co. reports the following data:

Sales $455,200 
Variable costs (250,400)
Contribution margin $204,800 
Fixed costs (146,300)
Operating income $58,500 

Determine Cartersville Co.’s operating leverage. Round your answer to one decimal place. 

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