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

Westminster 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 Westminster Co.’s operating leverage.


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