Question: Taft Co. reports the following data: Sales .............................................. $875,000 Variable costs .................................... 425,000 Contribution margin ............................ $450,000 Fixed costs ...................................... 150,000 Income from operations ......................

Taft Co. reports the following data:
Sales .............................................. $875,000
Variable costs .................................... 425,000
Contribution margin ............................ $450,000
Fixed costs ...................................... 150,000
Income from operations ...................... $300,000
Determine Taft Co.'s operating leverage.

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