Cartersville Co. reports the following dа ta:

Sales $787,100

Variable costs (480,100)

Contribution margin $307,000

Fixed costs (246,800)

Operating income $60,200

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

5.1 (Approx)

Explanation:

Given that,

Sales = $787,100

Variable costs = (480,100)

Contribution margin = $307,000

Fixed costs = (246,800)

Operating income = $60,200

Operating leverage:

= Contribution margin : Operating income

= $307,000 : $60,200

= 5.1 (Approx).

Therefore, the operating leverage of Cartersville Co. is 5.1 (approx).