After completing Exercise 4, what is the level of operating leverage? See circle.

EXERCISE 4: Rice Corp. has $800,000 in Sales, $200,000 in Variable Costs and $400,000 in Fixed Costs. Calculate the Operating Leverage for the company. You must first calculate the Contribution Margin and Net Income. Sales $ Variable Costs ( ) Contribution Margin $ Fixed Costs ( ) Net Income $ Contribution Margin / Net Income = Operating Leverage $ / $ =