Based on the following operating data, the operating leverage is

Note: Round your answer to 2 decimal places:

Sales	$ 1,150,000
Variable costs	460,000
Contribution margin	690,000
Fixed costs	135,000
Income from operations	$ 555,000

Operating leverage measures how sensitive the company's operating income is to a percentage change in sales. It can be calculated using the following formula:

\[
\text{Operating Leverage} = \frac{\text{Contribution Margin}}{\text{Income from Operations}}
\]

Given the dataOperating leverage measures how sensitive the company's operating income is to a percentage change in sales. It can be calculated using the following formula:

\[
\text{Operating Leverage} = \frac{\text{Contribution Margin}}{\text{Income from Operations}}
\]

Given the 

- Contribution margin = $690,000
- Income from operations = $555,000

Substituting these values into the formula:

\[
\text{Operating Leverage} = \frac{690,000}{555,000} = 1.24
\]

So, the operating leverage is **1.24**.

Would you like further details or have any questions?

Here are five related questions:
1. What does operating leverage imply about the company's cost structure?
2. How does high operating leverage affect profit during changes in sales?
3. Can operating leverage be negative, and what would that indicate?
4. What is the impact of fixed costs on operating leverage?
5. How does contribution margin influence operating leverage?

**Tip**: A higher operating leverage indicates that a small change in sales can lead to a larger change in operating income.

Based on the following operating data, the operating leverage is

Note: Round your answer to 2 decimal places:

Sales $ 1,150,000
Variable costs $460,000
Contribution margin $690,000
Fixed costs $135,000
Income from operations $555,000

Learn how to calculate operating leverage based on financial data. This problem involves determining the operating leverage using the contribution margin of $690,000 and income from operations of $555,000. Perfect for college-level business or finance students.

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