Based on the following operating data, what is the operating leverage?
|
Sales |
$600,000 |
|
Variable costs |
240,000 |
|
Contribution margin |
$360,000 |
|
Fixed costs |
160,000 |
|
Income from operations |
$200,000 |
A. 0.8
B. 1.2
C. 1.8
D. 4.0