Question: 1. Operating Leverage Tucker Co. reports the following data: Sales $775,800 Variable costs (512,000) Contribution margin $263,800 Fixed costs (169,600) Operating income $94,200 Determine Tucker
1. Operating Leverage
Tucker Co. reports the following data:
| Sales | $775,800 |
| Variable costs | (512,000) |
| Contribution margin | $263,800 |
| Fixed costs | (169,600) |
| Operating income | $94,200 |
Determine Tucker Co.s operating leverage. Round your answer to one decimal place.
2. Margin of Safety
The Spector Company has sales of $890,000, and the break-even point in sales dollars is $640,800.
Determine the Spector company's margin of safety as a percent of current sales.
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