**Operating Leverage**Teague Co. reports the following data:- **Sales:** $480,000- **Variable costs:** $264,000- **Contribution margin:** $216,000- **Fixed costs:** $175,200- **Income from operations:** $40,800**Determine Teague Co.’s operating leverage. Round your answer to one decimal place.**

Operating leverage (OL) is the degree to which a company's fixed costs contribute to its overall…

Teague Co. reports the following data: Sales Variable costs Contribution margin Fixed costs $480,000 264,000 $216,000 175,200 $40,800 Income from operations Determine Teague Co.'s operating leverage. Round your answer to one decimal place.

Teague Co. reports the following data: Sales Variable costs Contribution margin Fixed costs $480,000 264,000 $216,000 175,200 $40,800 Income from operations Determine Teague Co.'s operating leverage. Round your answer to one decimal place.

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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Question

**Operating Leverage**

Teague Co. reports the following data:

- **Sales:** $480,000
- **Variable costs:** $264,000
- **Contribution margin:** $216,000
- **Fixed costs:** $175,200
- **Income from operations:** $40,800

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

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