Question: Head-First Company plans to sell 5,000 bicycle helmets at $70 each in the coming year. Unit variable cost is $49 (includes direct materials, direct labor,

Head-First Company plans to sell 5,000 bicycle helmets at $70 each in the coming year. Unit variable cost is $49 (includes direct materials, direct labor, variable overhead, and variable selling expense). Total fixed cost equals $29,400 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $75,600.

Required:

Calculate the degree of operating leverage. (Round your answer to the nearest tenth.)

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