Computing Operating Leverage

Suppose the Coffee Bean has a new shop in a Cambridge village shopping center that sells high$-$end teas and coffees. Further, suppose it has added smoothie drinks to its product line. Below are the assumed sales and cost data for the company.

$\backslash$table$[[,,$Coffee,Tea,Smoothie$],[$Sales price per $(12$ oz$)$ serving,$$1\mathrm{.}35,$$$1\mathrm{.}25,$$$1\mathrm{.}95,],[$Variable cost per serving,,$0\mathrm{.}60,0\mathrm{.}45,0\mathrm{.}75],[$Fixed costs per month,$$16,000,,,]]$

Assume that the company sells each month an average of $12,000$ servings of coffee, $7,500$ servings of tea, and $4,500$ servings of smoothies.

REQUIRED

a$.$ Calculate Coffee Bean's operating leverage ratio

$\backslash$table$[[$Numerator$,$Denominator,Result,$],[,,,=$ Operating leverage ratio$],[$$$,0$$$,0,=$